SBI Life Insurance Q4 Results: Profit Rises On Higher Premiums
SBI Life’s net profit rose 26% over the year earlier to Rs 672 crore in the quarter ended March.
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.