SBI Life Q2 Results: Profit More Than Doubles, Aided By Lower Costs
SBI Life Insurance Co.’s quarterly profit rose aided by lower operating costs.
Net profit rose nearly 131% year-on-year to Rs 300 crore in the quarter ended September, according to the company’s exchange filing. That came as its total cost ratio—which comprises its commission ratio and operating expense ratio—fell to 8.6% during the first half of the ongoing financial year compared with 10.4% a year ago.
- Gross premium rose 28% to Rs 13,090 crore aided by 28% growth in renewal premiums.
- Renewal premiums stood at Rs 7,150 crore compared with Rs 5,581 crore a year ago.
The insurer’s individual new business premium, however, declined 13% to Rs 4,210 crore during the first half of this fiscal, impacting total annualised premium equivalent. New business annualised premium equivalent fell 15% to Rs 3,980 crore during the same period.
Value of new business margins remained constant at 20.2% during the first half this year. SBI Life’s 13th month persistency, however, improved to 85% in the second quarter compared to 83% a year ago.
Demand for protection policies have surged due to increased awareness amid the coronavirus pandemic aiding the growth of insurers. SBI Life’s share of protection business based on total APE improved to 13% in first half of this fiscal from 9% a year ago, while the share of savings portfolio declined to 88% from 91% during the same period.
On Monday, SBI Life share price rose 1.10% to Rs 778.75 on the BSE, even as the benchmark Sensex ended the day 1.33% lower at 40,145.50 points. The quarterly results were declared during market hours.