SBI Life Insurance Company net profit rose 15.94% to Rs 530.67 crore in Q4 March 2020 as against Rs 457.68 crore in Q4 March 2019.
Net premium earned increased by 4.67% to Rs 11,862.98 crore in Q4 March 2020 from Rs 11,333.02 crore in Q4 March 2019. Profit before Tax (PBT) jumped 8.22% to Rs 521.59 crore in Q4 March 2020 over Q4 March 2019.
Net profit rose 7.18% to Rs 1,422.17 crore in the year ended March 2020 (FY20) as against Rs 1,326.80 crore in the year ended March 2019 (FY19). Net premium earned jumped 22.60% to Rs 40,324.01 crore in FY20 from Rs 32,890.35 crore in FY19. Profit before Tax (PBT) increased by 2.96% to Rs 1,413.54 crore in FY20 over FY19.
Value of new business (VNB), used to measure profitability of the new business written in a period, increased by 17% to Rs 2010 crore in FY20 over FY19. VNB margin increased by 100 bps to 18.7% for FY20 compared with 17.7% for FY19.
Indian Embedded Value was at 31 March 2020 was Rs 26,290 crore compared to Rs 22,400 crore at 31 March 2019, registering a year-on-year (YoY) growth of 17%.
The annualized premium equivalent (APE), a measure of new business written by a life insurance company, rose 11% to Rs 10740 crore for FY2020 as compared to Rs 9700 crore for FY2019. While the individual protection APE recorded a 36% YoY growth to Rs 510 crore, group protection APE jumped 52% YoY to Rs 450 crore in FY2020.
The company's 13th month persistency stood at 86.14% in FY20 as compared to 85.07% in FY19. Its 61st month persistency was at 59.90% in FY20 as against 57.23% in FY19.
In insurance parlance, policy retention is known as "persistency" and "persistency ratio" measures how long customers stay with their policies, by looking at the number of policy renewals year after year.
Total cost ratio has decreased to 9.9% in FY2020, from 10.5% in FY2019. While the company's commission ratio has decreased by 20 bps to 4%, its operating expense is down by 40 bps to 5.9% in FY2020 over FY2019.
SBI Life's assets under management (AuM) has grown by 14% from Rs 1,41,020 crore as on 31 March 2019 to Rs 1,60,360 crore as on 31 March 2020 with debt-equity mix of 79:21. Approximately 93% of the debt investments are in AAA and sovereign instruments.
The company's net worth increased by 15% from Rs 7580 crore as on 31 March 2019 to Rs 8740 crore as on 31 March 2020. The solvency ratio as on 31 March 2020 was at 1.95 as against the regulatory requirement of 1.50.
The company has assessed the overall impact of the coronavirus pandemic on its business and financials, including valuation of assets, policy liabilities and solvency for the year ended 31 March 2020. Based on the evaluation, the company has made additional reserve amounting to Rs 600,000 thousands resulting from COVID-19 pandemic over and above the policy level liabilities calculated based on prescribed IRDAI regulations and the same have been provided for as at 31 March 2020 in the actuarial liability. The company will continue to closely monitor any future developments relating to COVID-19 which may have any impact on its business and financial position.
SBI Life Insurance Company is one of the leading life Insurance companies in India. The company has strong distribution network of 186,495 trained insurance professional and widespread operations with 937 offices across country.
Shares of the life insurance provider jumped 3.99% to end at Rs 715.65 on Tuesday.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
