Net premium income jumped 30.93% to Rs 18,025.34 crore in Q3 FY22 as compared to Rs 13,766.49 crore in Q3 FY21.
For the nine-month ending, SBI Life Insurance Company's net profit dropped 10% to Rs 830 crore on a 19% rise in gross written premium (GWP) to Rs 41,250 crore in 9M FY2022 over 9M FY2021.
SBI Life Insurance Company achieved private market leadership in Individual Rated Premium of Rs 9,070 crore with 24.8% private market share in 9M FY22. Individual New Business Premium grew 43% Y-o-Y (year-on-year) to Rs 1,16,100 crore in 9M FY22. New Business Premium (NBP) jumped 30% to Rs 1,87,900 crore in 9M FY 22 driven by strong growth in regular premium business by 36%.
Protection of New Business Premium has increased by 26% Y-o-Y to Rs 2,040 billion in 9M FY22 from Rs 1,620 crore in 9M FY21 due to 27% Y-o-Y growth in individual protection business to Rs 620 crore and 26% Y-o-Y growth in group protection business to Rs 1,420 crore in 9M FY22.
Total cost ratio for 9M FY22 stood at 8.7% as against 8.5% for 9M FY21. Commission ratio for 9M FY22 was at 3.5% from 3.4% for 9M FY21. Operating Expense for 9M FY22 stood at 5.1% from 5.1% in 9M FY21.
Value of New Business (VoNB) increased by 54% Y-o-Y to Rs 2,230 crore in 9M FY22. The VoNB margin increased by 260 bps to 21.9% in 9M FY22 from 19.3% in 9M FY21. VoNB (on effective tax rate) increased by 66% Y-o-Y to Rs 2,590 crore in 9M FY22. VoNB margin (on effective tax rate) increased by 470 bps to 25.5% in 9M FY22. Meanwhile, an additional reserve of Rs 270 crore towards COVID-19 pandemic has been kept by the company as of 31 December 2021.
The 13th month persistency (based on premium considering Single Premium and Fully Paid-up policies & group business where persistency is measurable) was at 87.17% in 9M FY22 as against 86.17% in 9M FY21. The improvement in 13th month persistency (based on premium considering Regular Premium/ Limited Premium payment under individual category) was by 49 bps to 83.87% for 9M FY22 as compared to 83.38% in 9M FY21 due to its focus on improving the quality of business and customer retention.
Asset under Management (AuM) grew 23% Y-o-Y to Rs 2,56,870 crore as on 31 December 2021 from Rs 2,09,500 crore as on 31 December 2020 with a debt-equity mix of 71:29. Over 96% of the debt investments are in AAA and Sovereign instruments, the company's press statement highlighted.
The company's net worth jumped 11% to Rs 11,200 crore as on 31 December 2021 from Rs 10,130 billion as on 31 December 2020. A strong solvency ratio as on 31 December 2021 of 2.09 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 lost 0.09% to end at Rs 1,237.75 on BSE.
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