SBI Life Insurance Q2 Results: PAT Remains Flat At Rs 380 Cr In Q2, Premium Income Surges

On Friday, October 27, 2023 in Mumbai, the Board of Directors of SBI Life Insurance Company Limited announced its audited financial results for the quarter and half year ended September 30, 2023. In the quarter that ended in September 2023, the company's net profit climbed by 0.8% to Rs 380 crore from Rs 377 crore during the same time the previous year. Net premium income was Rs 20,050 crore, a 22% YoY growth. The insurer's net premium income climbed by 24% to Rs 16,260 crore in H1FY24 from Rs 16,477.26 crore in H1FY23. SBI Life Insurance Company said its VoNB increased by 12% to Rs 2,360 crore for H1 FY 24 and VoNB margin stands at 28.6% in H1 FY 24.

In H1 FY 24, the company saw strong growth in Individual New Business Premium, rising by 20% to Rs 10,170 Cr, and it maintained its leadership position in Individual Rated Premium, which was around Rs 7060 Cr, with a 24.6% private market share. The company said that the rise in Single premium business contributed to its New Business Premium (NBP) of 28% to Rs 16,260 Cr in H1 FY 24. In H1 FY 24, its group protection business grew by 34% to approximately Rs 1,570 Cr, resulting in a 25% rise in its Protection New Business Premium from approximately Rs 1600 Cr in H1 FY 23 to approximately Rs 2,000 Cr.

In H1 FY 24, the Gross Written Premium (GWP) climbed by 21% to about 337.3 billion, mostly as a result of gains of 17% in Renewal Premium (RP) and 28% in Single Premium (SP). According to the company, the Total Cost Ratio for H1 FY 24 is 10.0%, compared to 10.2% for H1 FY 23. Its operating expense ratio for H1 FY 24 is 5.4% compared to 5.6% in H1 FY 23, and its commission ratio for H1 FY 24 is 4.6% compared to 4.5% for H1 FY 23.

With a debt-to-equity ratio of 68:32, the firm reported that its AuM jumped by 22%, from Rs 2,826.3 billion as of September 30, 2022, to Rs 3,451.5 billion as of September 30, 2023. AAA and sovereign instruments comprise more than 95% of the debt investments.

As of September 30, 2023, the company's net worth was at Rs 139.7 billion, up 14% from Rs 122.1 billion in the same quarter of FY23. During the quarter, the company operated 1,011 spots nationwide and had a robust distribution network of 305,320 certified insurance professionals, including agents, CIFs, and SPs.

SBI Life Q2 Results Outlook By Shreyansh Shah, Research Analyst, StoxBox

SBI Life Insurance Co. Ltd. H1FY24 First Cut - Net profit misses market estimates; Registers growth in market share

• Gross Written Premium (GWP) stood at Rs. 33,730 crores, up 20.6% YoY, while Annualized Premium Equivalent (APE) stood at Rs. 8,260 crores, up 20.9% YoY. This was mainly due to a 28.0% growth in Single Premium (SP) and a 17.0% growth in Renewal Premium (RP) in H1FY24.
• Assets under Management stood at Rs. 3,45,150 crores in H1FY24 compared to Rs. 2,82,630 crores in H1FY23.
• Value of New Business (VoNB) stood at Rs. 2,360 crores in H1FY24, up 11.3% YoY.
• Profit after Tax rose to Rs. 760 crores in H1FY24, up 18.8% YoY.
• The company maintained its leadership position in Individual Rated Premium, which stood at Rs. 10,170 crores, with 27.3% private market share in H1FY24.
• Strong growth in 49th-month and 61st-month persistency (based on premium considering Regular Premium/ Limited Premium payment under individual category) in H1FY24 by 92bps and 509bps, respectively, due to the life insurer's focus on improving the quality of business and customer retention.
• Robust solvency ratio of 2.12 as of September 30, 2023, as against the regulatory requirement of 1.50, indicating a solid financial position of the company.