SBI Life Insurance reported a 52% year-on-year growth in New Business Premium (NBP) to ₹3,154 crore for the quarter ended June 30, 2019, compared with ₹2,076 crore in the corresponding quarter last year.
The company’s protection new business premium more than doubled to ₹436 crore during the quarter, registering a 106% increase from ₹212 crore a year earlier. Individual New Business Premium collection also rose 41% to ₹1,872 crore.
SBI Life Insurance posted a 5% increase in profit after tax (PAT), which stood at ₹372 crore for Q1 FY20, compared with ₹354 crore in the same period last year.
The insurer maintained a strong solvency ratio of 2.17 as of June 30, 2019, significantly higher than the regulatory requirement of 1.50.
Assets Under Management (AUM) grew 22% year-on-year to ₹1,46,954 crore, with a debt-equity mix of 77:23. The company stated that 90% of its debt investments are in AAA-rated and sovereign instruments.
The insurer operates through a diversified distribution network comprising over 174,753 trained insurance professionals and 922 offices across India. Its distribution channels include bancassurance, agency networks, brokers, corporate agents, micro-agents, common service centres, web aggregators and direct business operations.
Among key operational highlights for the quarter, the company reported:
- 35% year-on-year growth in Individual Rated Premium (IRP)
- Reduction in operating expense ratio from 9.7% to 7.4%
- Improvement in the 13th month persistency ratio from 82.47% to 84.46%
- 49% increase in Value of New Business (VoNB) to ₹371 crore
- Expansion in VoNB margin from 19.0% to 19.9%
SBI Life Insurance stated that its continued focus on protection products, operational efficiency and diversified distribution strategy contributed to the company’s overall growth performance during the quarter.
