Private life insurer SBI Life Insurance posted a 5 percent year-on-year (YoY) growth in its June quarter (Q1) net profit at Rs 372 crore. This was on the back of a 52 percent YoY growth in its new business premium in Q1.
SBI Life's new business premium stood at Rs 3,154 crore for Q1.
The company's protection (pure term insurance) new business premium collection stood at Rs. 436 crore for Q1, showing a 106 percent YoY growth. The share of protection business grew to 14 percent in Q1FY20 from 10 percent in Q1FY19.
The individual new business premium (retail business) collection increased by 41 percent YoY to Rs 1,872 crore in Q1FY20.
The companys solvency ratio stood at 2.17 as on June 30 as against the regulatory requirement of 1.50.
SBI Lifes AUM also continued to grow at 22 percent to Rs 1,46,954 crore as on June 30, 2019. The debt-equity mix stood at 77:23. Of this, 90 percent of the debt investments are in AAA and sovereign instruments.
The company has a diversified distribution network of 174,753 trained insurance professionals and wide presence with 922 offices across the country, comprising of a bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing forms, web aggregators and direct business.
In Q1, SBI Life reported a decrease in operating expense ratio from 9.7 percent in Q1FY19 to 7.4 percent to Q1FY20.
The 13th month persistency improved by 200 basis points YoY to 84.46 percent in Q1.
The Value of New Business (VoNB) increased by 49 percent YoY to Rs 371 crore in the first quarter. The VoNB margin has increased from 19 percent in Q1FY19 to 19.9 percent in Q1FY20.
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