SBI Life gains as Q1 PAT jumps 36% YoY to Rs 519 cr

SBI Life Insurance Company advanced 1.59% to Rs 1,660.10 after the company reported 36.34% surge in net profit to Rs 519.52 crore in Q1 FY25 from Rs 381.04 crore posted in Q1 FY24.

Total income was at Rs 34,392.05 crore in the quarter ended 30 June 2024, registering a growth of 24.2% year on year (YoY).

The life insurer's net premium income grew by 15.27% YoY to Rs 15,105.48 crore during the quarter.

The insurance companys income from investments surged 32.27% to Rs 19,283.50 crore in the June quarter of FY25 as compared to Rs 14,578.90 crore posted in the same period last year.

 

Value of new business (VoNB) increased by 12% YoY to 970 crore for Q1 FY25. VoNB margin reduced to 26.8% in Q1 FY25 as against 28.8% recorded in Q1 FY24.

New business premium (NBP) grew by 13% YoY to Rs 7,030 crore in the quarter ended 30 June 2024.

Gross written premium (GWP) jumped 15% to 15,570 crore in Q1 FY25 mainly due to 19% growth in new business regular premium (RP) and 16% growth in renewal premium (RP) in Q1 FY25.

The companys total cost ratio for Q1 FY25 was at 10.5% as compared with 10.8% reported in Q1 FY24. The commission ratio was 4.4% in Q1 FY25 as against 4% in Q1 FY24. Operating expense ratio for Q1 FY25 was 6.1% as against 6.8% in Q1 FY24.

Annualized premium equivalent (APE) stood at Rs 3,640 crore, registering growth of 20 % YoY.

Asset under management (AuM) jumped 26% YoY to 4,14,770 crore as on 30 June 2024 with debt-equity mix of 62:38. Over 95% of the debt investments are in AAA and sovereign instruments.

SBI Life recorded strong growth in 49th month and 61st month persistency (based on premium considering Regular Premium/ Limited Premium payment under individual category) in Q1 FY25 by 259 bps and 229 bps respectively due to our focus on improving the quality of business and customer retention.

The companys net worth grew by 15% YoY to Rs 15,570 crore in Q1 FY25 as compared to Rs 13,530 crore recorded in Q1 FY24.

SBI life reported robust solvency ratio of 2.01 as on 30 June 2024 as against the regulatory requirement of 1.50 indicating strong financial position of the company.

The company has strong distribution network of 327,038 trained insurance professionals consisting of Agents, CIFs and SPs along with widespread operations with 1,062 offices across country.

SBI Life Insurance Company is one of the leading life Insurance companies in India. The company has a strong distribution network of 1,062 offices, 23,943 employees, a large and productive network of about 257,266 agents, 79 corporate agents and 14 bancassurance partners with more than 41,000 partner branches, 132 brokers and other insurance marketing firms.

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