SBI Life Q1 PAT up 45% on growth in premium, investment income

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sbi life It reported a net profit of INR 381 crore for the first quarter of FY24, an increase of 45 per cent year-on-year driven by growth in premium income and income from investments.

Gross Written Premium (GWP) grew by 19 per cent YoY to Rs 13,560 crore on the back of 28 per cent growth in renewal premiums.

The life insurance company’s net income from investments during the quarter was ₹14,579 crore as against a loss of ₹6,406 crore in the same period last year.

New business premium (NBP) grew 11 per cent year-on-year to Rs. 6,207 crore for the quarter, led by 18 per cent growth in single premium and 57 per cent growth in pensions and new business.

Protection NBP increased by 12 per cent YoY at ₹ 781 crore supported by a 5 per cent rise in individual NBP protection to ₹ 213 crore, and a 15 per cent growth in group protection business to ₹ 570 crore.

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Individual NBP rose 18 per cent at $4,059 crore, giving the insurer a market share of 26.8 per cent to the private sector. In terms of individual insurance premium, the insurance company had a private market share of 23 percent.

Annual Premium Equivalent (APE) increased by 4 per cent at ₹3,033 crore led by 17 per cent growth in APE Protection to ₹373 crore.

Bancassurance channel accounted for 65 percent for APE, agency channel 25 percent, and other channels 10 percent for the quarter.

However, the value of new business (VoNB) fell by 1 per cent to Rs. 873 crore in Q1 FY24 while VoNB margin was 28.8 per cent, which is also down from 30.4 per cent last year.

13thy The consistency ratio for the month, a measure of adherence to customers, worsened slightly to 85 percent from 85.6 percent a year earlier. perseverance on 37y Months onwards the dredges were improved with 61street The monthly persistence rate was 56.7 percent, compared to 50.3 percent a year ago.

SBI Life’s assets under management grew by 25 per cent to Rs. 3.3 crore as on 30 June. The solvency ratio was 2.15 as on 30 June.