 "SBI Life Insurance")
SBI Life Insurance, the second-largest private life insurer, posted a 5.79 per cent year-on-year (Y-o-Y) rise in net profit to Rs 321.75 crore in the quarter ended on December 31, 2023, compared to Rs 304.13 crore on December 31, 2022, on a standalone basis. The strong growth in investment income cushions the rise in expenses, aiding growth in profitability.
Sequentially, it is 15.37 per cent lower than the Rs 380.19 crore profit accrued in the second quarter (Q2) of 2023-24 (FY24).
The net investment income of the life insurer surged by 121.65 per cent Y-o-Y to Rs 16,468.64 crore from Rs 7,442.95 crore. The net premium income of the company rose to Rs 22,316.47 crore, up by 16.4 per cent, from Rs 19,170.8 crore in the year-ago period.
The rewards component of expenses for the life insurance company rose by 382.55 per cent to Rs 192.25 crore from Rs 39.84 crore.
Commission paid to agents and brokers rose by nearly 10.82 per cent to Rs 936.64 crore during the reporting period, from Rs 845.21 crore during the same period of the previous year.
The other operating expenses in the insurance business rose 21.14 per cent to Rs 1,058.82 crore from Rs 874.06 crore.
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The total annualised premium equivalent (APE) of the insurer rose by 13 per cent to Rs 6,130 crore in the quarter under review, rising from Rs 5,430 crore recorded in the year-ago period.
For the nine months of FY24, APE inched up by 17 per cent to Rs 14,390 crore from Rs 12,260 crore in the year-ago period.
New business premium rose to Rs 5,676.69 crore in the October-December quarter of FY24 from Rs 5,055.17 crore during the same period of the previous financial year.
The value of new business (VNB), which is a key measure of the economic value of profits expected to emerge from the new business of the insurance company, rose to Rs 1,680 crore in the third quarter from Rs 1,510 crore a year ago.
The VNB margin also declined to 27.41 per cent from 27.81 per cent in the year-ago period.
The solvency ratio of the life insurer, which is required to be at 150 per cent, stood at 209 per cent compared to 212 per cent in Q2 and 225 per cent in the third quarter of 2022-23.
Meanwhile, the persistency ratios on a premium basis for the 13th month and 61st month were 82.09 per cent and 55.86 per cent, respectively. Whereas, in the preceding quarter, the 13th month and 61st month persistency ratios stood at 83.32 per cent and 56.1 per cent, respectively.
