SBI Life Q3 results: Net profit jumps 15% to Rs 1,083 crore

The largest private sector life insurer SBI Life on Thursday reported a 15 per cent growth in net profit to Rs 1,083 crore in the December quarter, boosted by healthy performance across all segments, especially on premium income and margins.

The company said the quarter saw its market leadership among peers rising to 29.1 per cent in individual new business premium of Rs 17,762 crore which grew by 17 per cent. Annualized premium equivalent (APE) grew 17 per cent to Rs 14,389 crore, while protection annualized premium equivalent (APE) jumped 24 per cent to Rs 1,524 crore.

The key profitability metric which is the value of new business (VNB)' which is the future profits from policies sold now, rose 11 per cent to Rs 4,038 crore.

VNB margin stood at 28.1 per cent, one of the highest in the industry and this helped the company maintain a high solvency ratio of 2.09 as against the regulatory requirement of 1.50.

The company's new business premium of rose to Rs 26,000 crore from Rs 21,512 crore, while single premium income increased 25 per cent.

The company has been focusing on protection side, and the new business premium from this segment rose 17 per cent to Rs 2,972 crore for the period ended December 2023.

Protection from individual new business premium rose to Rs 667 crore taking the individual new business premium to Rs 17,762 crore, up 17 percent on-year and the annuity and pension new business rose 12 per cent to Rs 6,787 crore.

The overall AUM grew 24 per cent to Rs 3,71,410 crore from Rs 2,99,987 crore, with the debt-equity mix of 65:35. Over 95 per cent of the debt investments are in AAA and sovereign instruments.

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