SBI Life Insurance Co.’s quarterly profit rose, beating estimates, on higher premiums.
The private insurer’s net earnings rose 26% over the year earlier to Rs 672 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 579-crore consensus estimate of analysts tracked by Bloomberg.
SBI Life Q4 FY22 Highlights (YoY)
Total revenue was up 3% to Rs 21,428 crore, compared with the Rs 13,734-crore forecast. That was on account of higher net premiums even as investment income fell.
Operating profit rose 12% to Rs 694 crore against the estimated Rs 673 crore.
PBT margin was at 3.2% against 3%. The consensus forecast was 4.9%.
Net premium was up 12% to Rs 17,434 crore.
Renewal premiums contributed around 62% of the net premiums.
Persistency ratios by premium for the 13th month fell to 85.01% from 85.17%, while it improved for the 61st month to 51.13% from 47.59%.
Solvency ratio was at 2.05 times against 2.15 times a year ago—well above the statutory requirement of 1.50 times.
The company declared an interim dividend of Rs 2 apiece against Rs 2.5 a year ago.
FY22 Highlights
New business premium received rose 23% to Rs 255 crore.
Renewal premium, which makes up for 57% of gross premium, was up 12%.
Gross written premium was up 17%.
After-tax profit rose 3% to Rs 1,506 crore.
Earnings per share rose to Rs 15.06 from Rs 14.56.
The product mix comprised non-participating products at 52%, participating products at 3% and unit-liked plans at 45% on a new business premium basis.
Persistency ratio by premium for 13th and 61st months fell marginally, while it improved for the 25th, 37th, 49th months.
Shares of SBI Life closed 3.7% higher after the results were announced compared with a 1.21% gain in the benchmark Nifty 50.