SBI Life Insurance Company reported a 40 per cent decline in third quarter net profit at ₹233 crore against ₹390 crore in the year-ago period.
Notwithstanding the 25 per cent year-on-year (y-o-y) decline in benefits paid (net), the bottom line was weighed down by a significant change in actuarial valuation (including movement in fund for future appropriation).
Net premium income (including first year premium, renewal premium and single premium) rose 18 per cent y-o-y in the reporting quarter to ₹13,766 crore.
Income from investments (net) soared 214 per cent y-o-y to ₹12,777 crore. This income is net of amortisation and losses (including capital gains).
Net commission paid increased 14 per cent y-o-y to ₹517 crore. Operating expenses related to insurance business (including employees remuneration and welfare expenses and other operating expenses) nudged up 1.14 per cent y-o-y to ₹630 crore.
Benefits paid (net) declined 25 per cent y-o-y to ₹4,644 crore. This is inclusive of interim bonus and terminal bonus.
The life insurer reported a significant jump under the head “change in actuarial liability” to ₹20,244 crore (₹7,657 crore in the year-ago quarter).
Solvency ratio
The surplus declined 51 per cent y-o-y to ₹297 crore. The solvency ratio improved a tad to 2.34 against 2.30 in the year-ago quarter. The 13th month persistency ratio improved to 86.17 per cent against 85.71 per cent.