SBI Life Insurance Q3 Results: Profit Falls, Misses Estimates
SBI Life Insurance's Q3 revenue rose 30% to Rs 26,627 crore, compared to the consensus estimate of Rs 25,021 crore.
SBI Life Insurance Co.’s third-quarter profit declined year-on-year, missing estimates.
The private insurer’s profit fell 16% year-on-year to Rs 304 crore in the quarter ended December, according to its exchange filing. That compares to the Rs 447-crore profit estimated by the Bloomberg consensus.
Sequentially, the bottom line contracted 19%.
However, the company earned a net premium of Rs 19,171 crore, a 6% increase over a year earlier.
SBI Life Q3 FY23 Highlights (YoY)
Revenue rose 30% to Rs 26,627 crore. The consensus estimate was Rs 25,021 crore.
Of the gross premiums, new business premium fell 1% while renewal premium—which contributed 56% of the total—increased 13%.
The 13th month persistency ratio—or customer retention—improved to 80.53% from 79.21%, while the 61st month persistency ratio rose to 53.29% from 45.28%.
Solvency ratio—which measures the extent to which assets cover commitments for future liabilities—rose to 2.25 from 2.09. The minimum regulatory requirement is 1.50.
SBI Life's overall cost ratio increased to 9.1% from 7.7%.
The after-tax profit rose 13% to Rs 944 crore.
Value of new business grew 44% to Rs 3,630 crore.
VNB margin expanded to 29.6% from 24.8%.
Annualised premium equivalent rose 20%.
Persistency ratios for the 13th month improved to 84.55% from 83.87%, and for the 61st month, it rose to 53.59% from 48.68%.
Operating expense ratio increased by 10 basis points to 5.2%, while commission ratio rose to 4.5% from 3.5%. Thus, overall cost ratio was up to 9.7% from 8.7%.
Assets under management increased 17% to Rs 3 lakh crore.
Return on equity grew to 10.4% against 10.3% a year ago.
The share of par in the APE product mix remained at 5%, while that from non-par rose to 38% from 28%. Share of ULIP declined to 57%.
The company reported a growth in protection new business premium of 25% from Rs 2,040 crore in nine months of FY22 to Rs 2,550 crore in nine months of FY23 due to 12% growth in individual protection and 30% growth in group protection.
Shares of SBI Life ended 2.07% lower on Friday compared with a 0.39% decline in the benchmark BSE Sensex.