SBI Life Insurance Q3 net up 56.4% at Rs364cr on higher premium income

23 Jan 2022 , 07:50 PM

SBI Life Insurance reported -22.95% fall yoy in revenues in the Dec-21 quarter at Rs20,458cr. The big reason for the fall in revenues was a sharp fall in investment income which fell vertically from Rs12,777cr last year to Rs2,424cr in this quarter.

Premium income was sharply higher on a yoy basis on the front of single premium policies, first year premiums as well as on renewal premiums.

For the first 9 months of FY22, the value of new business (VNB) was 66% higher at Rs2,590cr. The total annualized premium equivalent (APE) was Rs.10,170cr yielding VNB growth on yoy basis of a healthy 36% for the said period.

Customer retention and cost efficiency are the core of an insurance company. Its 13th month persistency and 61st month persistency were flat at around 83.87% and 48.88% respectively. The assets under management were at a robust level of above Rs.2.50 trillion.

Despite a sharp fall in revenues the net profits have remained sharply higher by 56.35% on yoy basis at Rs364cr. That is because the fall in investment income has been offset by a sharp spike in premium incomes and sharply lower actuarial provisioning estimates. PAT margins improved substantially from a level of 0.88% in the Dec-20 quarter to 1.78% in the Dec-21 quarter on account of a much smaller revenue base.

Financial highlights for Mar-21 compared yoy and sequentially

	SBI Life Insurance
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
revenues	₹ 20,458	₹ 26,552	-22.95%	₹ 25,404	-19.47%
net profit	₹ 364	₹ 233	56.35%	₹ 247	47.62%
Diluted EPS	₹ 3.64	₹ 2.33		₹ 2.46
Net Margins	1.78%	0.88%		0.97%
Solvency Ratio	2.09	2.34		2.12
Expense Mgmt Ratio	7.72%	8.38%		8.68%
Policy Holder Liability Ratio	2197.47%	1984.65%		2147.41%