SBI Life Insurance Company Q4 FY22 PAT spurts 26% YoY to Rs 672 cr

28 Apr 2022 , 04:48 PM

Net premium income jumped 12.07% to Rs 17,433.77 crore in Q4 FY22 as compared to Rs 15,555.74 crore in Q4 FY21. Profit before tax (PBT) grew 11.56% to Rs 694.06 crore in Q4 March 2022 as against Rs 622.13 crore in Q4 March 2021.

On a yearly basis, the life insurers standalone net profit rose 3.44% to Rs 1,505.99 crore on a 17.40% increase in income from investments (net) to Rs 58,432.29 crore in FY22 over FY21.

SBI Life Insurance Company achieved a private market leadership in Individual Rated Premium (IRP) of Rs 12,870 crore with 23.4% private market share in FY22. The Individual New Business Premium rose 32% Y-o-Y (year-on-year) to Rs 16,500 crore in FY22. New Business Premium (NBP) jumped 23% Y-o-Y to Rs 25,460 crore in FY22 driven by strong growth in regular premium business by 25%.

Protection New Business Premium soared 24% to Rs 3,050 crore in FY22 from Rs 2,460 crore in FY21, due to 26% Y-o-Y growth in individual protection business to Rs 940 crore and 23% Y-o-Y growth in group protection business to Rs 2,110 crore in FY22. Gross Written Premium (GWP) grew 17% to Rs 58,760 crore in FY22 mainly due to 25% growth in First Year Premium (FYP) and 12% growth in Renewal Premium (RP) in FY22.

The company has a distribution network of 2,05,717 trained insurance professionals consisting of agents, CIFs and SPs along with widespread operations with 952 offices across country. The firm also has a distribution network 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.

The NBP channel mix for FY22 is bancassurance channel 53%, agency channel 18% & other channels 29%. NBP of Agency channel has increased by 30% to Rs 4617 crore in FY22 while NBP of Banca channel has increased by 17% to Rs 133.92 crore in FY22 as compared to same period last year.

Value of New Business (VoNB) increased by 39% Y-o-Y to Rs 3,700 crore for FY 22. VoNB margin has also improved by 270 bps to 25.9% in FY22. SBI Life Insurance Company has an additional reserve of Rs 290 crore towards COVID-19 pandemic as on 31 March 2022.

Its 13th month persistency (based on premium considering single premium and fully paid-up policies & group business where persistency is measurable) stood at 88.35% in FY22 as against 87.92% in FY21. The companys strong growth in 49th month persistency (based on premium considering regular premium/ limited premium payment under individual category) improved by 423 bps to 69.85% for FY22 over 65.62% in FY21, on account of its focus on improving the quality of business and customer retention.

Asset under Management (AuM) grew 21% to Rs 2,67,410 crore as on 31 March 2022 from Rs 2,20,870 crore as on 31 March 2021, with debt-equity mix of 71:29. Over 96% of the debt investments are in AAA and sovereign instruments, the company stated in its press release.

The companys net worth increased by 12% to Rs 11,620 crore as on 31 March 2022 from Rs 10,400 crore as on 31 March 2021. Strong solvency ratio as on 31 March 2022 was at 2.05 as against the regulatory requirement of 1.50.

SBI Life Insurance Company is one of the leading life Insurance companies in India. SBI Life Insurance Company has a strong distribution network of 1,94,177 trained insurance professionals consisting of agents, CIFs and SPs along with widespread operations with 947 offices across country. The company has diversified distribution network 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.

Shares of SBI Life Insurance Company rallied 3.99% to end at Rs 1,116.55 on BSE.

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