SBI Life Q2FY23 PAT up 52.8% at Rs376.74 crore on lower provisioning for doubtful and bad debts

26 Oct 2022 , 08:47 AM

SBI Life Insurance reported 8.35% growth in total revenues for the September 2022 quarter on consolidated basis at Rs27,525cr.

Revenue growth was 5-fold in sequential terms due to sharp turnaround in investment income.

In the private life space, SBI Life dominated with 31% growth and 25.3% market share as new business premium (NBP) touched Rs84.6 bn.

APE increased 22% to Rs68.3 billion while the value of new business (VNB) increased by 53% yoy to Rs21.2 billion.

Renewal premiums were also up 16% yoy at Rs148.8 billion in Q2FY23.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 52.8% at Rs376.74cr and it was 3.83% higher on sequential basis.

The VNB margins increased yoy by 630 bps at 31% in the quarter while the boost to profits came from the sharp fall in provisions for bad and doubtful debts in the quarter. The insurer had robust solvency ratio of 2.19 while its Indian embedded value (IEV) stood at Rs424.1 billion.

Net profit margins at 1.37% in Q2FY23 were better compared to 0.97% in Q1FY22 but lower than the 7.82% in Q2FY23 on sharply lower base.

Financial highlights for Sep-22 compared yoy and sequentially

	SBI Life Insurance
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 27,525.26	₹ 25,404.10	8.35%	₹ 4,641.12	493.07%
Net Profit (Rs cr)	₹ 376.74	₹ 246.62	52.76%	₹ 362.85	3.83%
Diluted EPS (Rs)	₹ 3.76	₹ 2.46		₹ 2.63
Net Margins	1.37%	0.97%		7.82%