SBI Life Insurance Q4 net profits flat at Rs532.38cr as lower fair value losses offset by higher actuarial liabilities

SBI Life Insurance reported 268.23% growth yoy in revenues in the Mar-21 quarter at Rs20,897cr

May 03, 2021 03:05 IST India Infoline News Service

SBI Life Insurance reported 268.23% growth yoy in revenues in the Mar-21 quarter at Rs20,897cr. While the biggest contribution came from fair value adjustments on investments, the new business premium or NBP was up 24% in FY20 while the Renewal Premium of RP was also up 23% on a yoy basis.

The flat growth in net profits can be explained by the fact that the huge top line gains from sharply lower provisions for investment fair values, were offset by the sharply higher actuarial liabilities in the quarter based on actuarial assessment of risk. In terms of individual premium, SBI Life enjoyed 22.6% market share among private players.

For the fiscal year FY21, the operating expense ratio fell from 5.9% to 4.8% leading to the total cost ratio falling from 9.9% to 8.3%. New business margins or NBM improved yoy from 20.7% to 23.2%. The value of new business or VONB was up 20% on a yoy basis. In terms of NBP, the market share of SBI Life stands at 21.9% among private players.

During the FY21, the assets under management or AUM grew by 38% to Rs220,870cr. The AUM is invested 73% in debt and 27% in equities with more than 90% debt allocation to AAA and Sovereign Rated debt.

Financial highlights for Mar-21 compared yoy and sequentially

SBI Life Insurance
Rs in Crore Mar-21 Mar-20 YOY Dec-20 QOQ
Total Revenues ₹ 20,896.70 ₹ 5,674.91 268.23% ₹ 26,551.90 -21.30%
Net Profit (PAT) ₹ 532.38 ₹ 530.67 0.32% ₹ 232.85 128.64%
Diluted EPS ₹ 5.32 ₹ 5.30 ₹ 2.33
Net Margins 2.55% 9.35% 0.88%
Solvency Ratio 215% 195% 234%
Expense Mgmt Ratio 7.96% 9.88% 8.38%
Policy Holder Liability Ratio 2040.22% 1759.27% 1984.65%

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