SBI Life Insurance Company Q2 FY22 PAT slips 18% to Rs 247 cr


SBI Life Insurance Company’s stand-alone net profit fell 17.71% to Rs 246.62 crore on a 92.01% increase in investment income (net) to Rs 10,734.43 crore in the second quarter of September 2021 compared to the second quarter of September 2020.

Net premium income jumped 14.02% to Rs 14,660.64 crore in the second quarter of FY22, from Rs 12,857.95 crore in the second quarter of FY21.

On a semi-annual basis, profit after tax (PAT) stood at Rs 470 crore for the first half of FY22. The value of new business (VoNB) jumped 64% year-on-year (year-on-year) to Rs 1,220 crore in the first half of fiscal 22. The VoNB margin increased 300 basis points to 21, 8% in S1 FY22 compared to 18.8% in S1 FY21. An additional reserve of 270 crore for the COVID-19 pandemic has been kept as of September 30, 2021. The company has provisioned Rs 116 crore (including interest) in accordance with the IRDAI order dated January 11, 2017 ordering reimbursement of administrative costs to group insurance policy members for the Super Suraksha product.

Persistence at month 13 (based on premium taking into account single premium and fully paid policies and group business where persistence is measurable) stood at 87.66% in H1 FY22 versus 85.92% in H1 FY21 . Strong growth in persistence in the 13th month (based on premiums taking into account the payment of regular premiums / limited premiums in the individual category) of 155 basis points at 84.72% for H1 FY22 versus 83.17% in H1 FY21 due to our focus on improving business quality and customer retention.

Assets under management (AuM) increased by 31% from Rs 1,860,360 crore as of September 30, 2020 to Rs 2,4,4,180 crore as of September 30, 2021 with a debt-to-equity mix of 70:30. Over 95% of debt investments are in AAA and sovereign instruments. Total investment income (net of allowance for decrease and write-off) of Rs 1,86,900 crore in H1 FY22 included Rs 1,81,700 crore in the portfolio of policyholders and 520 crore in the portfolio of shareholders. Investment income increased 28%, mainly due to profits on the sale or repurchase of investments.

SBI Life Insurance Company wrote off investment claims of Rs 29 crore for DHFL Non Convertible Debentures (NCDs) upon settlement in accordance with the resolution plan. The company has already provided 100% NPA of Rs 53 crore in FY20 due to default on interest and principal repayment of DHFL MNTs.

The company’s net worth increased 13% to Rs 10,910 crore as of September 30, 2021 from Rs 9,660 crore as of September 30, 2020. Strong solvency ratio as of September 30, 2021 of 2.12 compared to the regulatory requirement of 1.50.

SBI Life Insurance Company is one of the leading life insurance companies in India. The company has a strong distribution network of 2,00190 trained insurance professionals comprising agents, CIFs and SPs as well as extensive operations with 947 offices across the country. The company achieved private market leadership in the individual premium valued of Rs 4,990 crore with 23.6% private market share in the first half of FY22.

Shares of SBI Life Insurance Company rose 1.05% to close at Rs 1,183.95 on BSE.

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(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

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