(Photographer: Jim R. Bounds/Bloomberg)

Higher Retail Renewals Aid SBI Life’s March Quarter Premium Income

SBI Life Insurance Company Ltd.’s net premium income was aided by higher renewals from its retail business in the quarter ended March.

Net premium income rose 26 percent year-on-year to Rs 9,237 crore, the life insurer said in a stock exchange filing. Renewal premium rose 32 percent in the same period, the filling added.

Total income, however, fell 7 percent to Rs 10,052 crore on account of a 78 percent decline in its income from investments. “The reason is primarily that markets of late have been subdued and the rate of interest on the debt side has gone up,” Sanjiv Nautiyal, managing director and chief executive officer of the insurer told BloombergQuint. The portfolio, for this reason, has not given returns as was expected, he added.

The insurer’s expenses of management to its gross written premium rose to 9.26 percent from 9.71 percent during the same period. Solvency margin also improved marginally to 206 percent from 204 percent in the January-March quarter.

Profit after tax of the country’s second-largest private sector life insurer by market capitalisation increased 13 percent to Rs 381 crore.

Its individual rated premium grew 31.2 percent to Rs 7,790 crore improving its private market share to 22 percent from 21 percent in the corresponding period last year.

Other Highlights

  • Persistency ratios (based on premium) for 13th month and 61st month stood at 83.03 percent and 58.43 percent in the year ended March, from 81.07 percent and 67.18 percent respectively last year.
  • Value of new business improved 34 percent to Rs 1,390 crore.
  • Value of new business margin improved to 16.2 percent from 15.4 percent.
  • Embedded value improved 15 percent to Rs 19,070 crore.
  • Net worth rose 18 percent to Rs 6,530 crore.
  • Assets under management rose by 19 percent to Rs 1,16,260 crore as of March 31, 2018.