SBI Life Insurance registers 5% growth in Net Profit to Rs 390 crores for the quarter ended june 30, 2020
SBI Life Insurance, one of the most trusted private life insurers in the country, registered a 5% growth in Net Profit to Rs. 390 crores for the period ended June 30, 2020 as compared to Rs. 371.90 crores in the corresponding quarter last year.
With a market leadership of 23.9% private market share in Q1 FY 2021, the company continues its focus towards the protection category. Besides this, the company also witnessed strong growth in its 61st-month persistency ratio based on premium by 687 bps. Single premium has increased by 31% over the corresponding year.
The New Business Premium is Rs. 3,059 crore for the period ended on 30th June 2020.
The company’s solvency ratio remains robust at 2.39 as on June 30, 2020 as against the regulatory requirement of 1.50.
SBI Life’s AUM also grew by 19% to Rs. 1,75,355 crore as on June 30, 2020 from Rs. 1,46,954 crore as on June 30, 2019, with the debt-equity mix of 76:24. 90% of the debt investments are in AAA and Sovereign instruments.
The company has a diversified distribution network of 1,90,696 trained insurance professionals and wide presence with 940 offices across the country, comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing firms, web aggregators and direct business.
Performance for the period ended June 30, 2020
•Increase in net profit by 5% to Rs. 391 crore
• Private market leadership in Total New Business Premium (NBP) with 23.9% market share
• 80 bps increase in VoNB margin to 18.7% as compared to Q1 FY 2020
• Strong growth in 61st-month persistency ratio based on premium by 687 bps
• Robust solvency ratio of 2.39
• Decrease in Operating expense ratio to 7.0% from 7.3%
• Growth in Gross written premium by 14%