Quarterly result. SBI Life Q1 PAT up 45% on growth in premium, investment income

SBI Life posted a net profit of ₹381 crore for Q1 FY24, up 45 per cent y-o-y led by growth in premium income and income from investments.

Gross written premium (GWP) grew 19 per cent y-o-y to ₹13,560 crore on the back of 28 per cent growth in renewal premium.

The life insurer’s net income from investments for the quarter was ₹14,579 crore as against a loss of ₹6,406 crore in the year-ago period.

New business premium (NBP) grew 11 per cent y-o-y to ₹6,207 crore for the quarter, led by 18 per cent growth in single premium and 57 per cent growth in annuity and pension new business.

Protection NBP was up 12 per cent y-o-y at ₹781 crore aided by 5 per cent rise in protection individual NBP to ₹213 crore, and 15 per cent growth in group protection business to ₹570 crore.

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Individual NBP was up 18 per cent at ₹4,059 crore, giving the insurer a private sector market share of 26.8 per cent. In terms of individual rated premium, the insurer had a private market share of 23 per cent.

Annualised premium equivalent (APE) was up 4 per cent at ₹3,033 crore led by 17 per cent growth in protection APE to ₹373 crore.

The bancassurance channel accounted for 65 per cent for APE, agency channel for 25 per cent and other channels for 10 per cent, during the quarter.

However, value of new business (VoNB) fell 1 per cent to ₹873 crore for Q1 FY24 whereas VoNB margin was 28.8 per cent, also lower than 30.4 per cent a year ago.

The 13^th month persistency ratio, a measure of customer stickiness, worsened slightly to 85 per cent from 85.6 per cent in the previous year. Persistency for the 37^th month onwards buckets improved with the 61^st month persistency ratio at 56.7 per cent against 50.3 per cent a year ago.

SBI Life’s AUM grew 25 per cent to Rs 3.3 lakh crore as on June 30. Solvency ratio stood at 2.15 as on June 30.