SBI Life Insurance announces Q2 results!

• Profit up 131%: SBI Life Insurance Company reported a 131% year-on-year increase in net profit to ₹299.73 crore in the quarter ended September 20. Net premium income stood at ₹12,857.95 crore growing 27.16% yearly and 69% on a sequential basis. The company reversed tax provisions worth ₹12.7 crore during the quarter. The company had made provisions of ₹70.3 crore in the year ago period. Besides this, the company’s profit was also boosted by a decline in Operating expense ratio from 6.4% to 5.4% on a yearly basis. 
• Market Share: SBI Life gained significant market share on NBP(New Business Premium) basis post initial lockdown. For the quarter the company attained private market leadership in NBP  with 24.5% market share and in Individual Rated Premium (IRP) with 20.7% market share.

• AUM (Assets Under Management) : AUM grew by 20% from ₹1,54,760 crore as on September 30, 2019 to ₹1,86,360 billion as on September 30, 2020 with debt-equity mix of 76:24. 
• Operational Metrics: Value of New Business decreased by 12% to ₹750 crore in H1 FY21 from ₹850 crore in H1 FY20. New business margin stood flat at 18.8% in H1 FY21 as compared to 18.1% a year ago. Persistency ratio(13th month)—a measure of how long a customer continues with their policy stood at 85.92% as against 85.81% a year ago. 61st-month persistency improved to 60.87% compared to 57.48% a year ago. GWP(Gross Written Premium) rose by 22% to ₹ 20,730 crore in H1 FY21 mainly due to strong growth in Renewal Premium by 29% from ₹9,120 crore in H1 FY20 to ₹11,730 crore in H1 FY21.

After HDFC Life, SBI Life has also reported a strong set of numbers. Insurance as a category has emerged stronger as a vehicle to protect one’s family and realise their long term financial goals. Heightened risk awareness amongst customers has resulted in improvement in premium. SBI Life will be one of the major beneficiaries of the sector growth because of its strong brand image, distribution channels, network and growing market share.