SBI Life Insurance Q3 Results: Profit Rises On Higher New Business Premium, But Misses Estimates
SBI Life Insurance Co.’s quarterly profit rose on higher premiums. Still, it lagged estimates.
The private insurer’s net earnings jumped 56% over the year earlier to Rs 364.10 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 413.4-crore consensus estimate of analysts tracked by Bloomberg.
Other Highlights (YoY)
Total revenue fell 23% to Rs 20,458.3 crore due to a decline in income from investments. That compares with the Rs 26,552-crore forecast.
Profit before tax rose 64% to Rs 381.40 crore
PBT margin was at 1.9% against 1%.
Net premium jumped 31% to Rs 18,025.3 crore.
First-year gross premium surged 24%.
Gross renewal and single premiums improved 14% and 105%, respectively.
Renewal premiums contributed around 53.2% of the total gross premiums.
Persistency ratios by premium improved for the 13th and 61st months to 79.21% and 45.28%.
Solvency ratio was at 2.09 times against 2.34 times in the corresponding period a year ago— though well above the statutory requirement of 1.50 times.
Its asset under management rose 23% to Rs 2.56 lakh as of Dec. 31, 2021, with debt-equity mix of 71:29. Over 96% of the debt investments are in AAA and sovereign instruments.