Tag: SBI Life Insurance

SBI Life Insurance Q4 results: Net premium income rises 26%, dividend declared

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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SBI Life Insurance on Friday (April 26) announced a net profit of ₹810 crore for the March quarter, marking a 4.4% rise from the corresponding period last year when it stood at ₹777 crore. The insurer’s net premium income surged to ₹25,116 crore compared to ₹19,896 crore in the previous year, reflecting an increase of 26%.

Similarly, the annualised premium equivalent increased by 17.1% to ₹5,330 crore from ₹4,550 crore year-on-year (YoY).

#4QWithCNBCTV18 | SBI Life reports #Q4 earnings👇

➡️Net Profit up 4.4% at ₹811 cr vs ₹777 cr (YoY)
➡️Annualised premium equivalent up 17.1% at ₹5,330 cr vs ₹4,550 cr (YoY)
➡️Value of new business up 4.9% at ₹1,510 cr vs ₹1,440 cr (YoY)
➡️VNB margin at 28.3% vs 31.7% (YoY) pic.twitter.com/JeZ5g3DTiz

— CNBC-TV18 (@CNBCTV18Live) April 26, 2024

Additionally, the value of new business grew by 4.9% to ₹1,510 crore compared to ₹1,440 crore YoY, with the VNB (Value of New Business) margin standing at 28.3% versus 31.7% YoY.

However, the solvency ratio experienced a slight dip, standing at 1.96% as opposed to 2.15% recorded in the previous year.

The company’s total assets under management expanded by 27% to reach ₹3.89 lakh crore as of March 31, 2024, compared to ₹3.07 lakh crore as of March 31, 2023.

The debt-equity mix remained at 64:36, with over 95% of debt investments allocated to AAA and sovereign instruments.

In a move to reward its shareholders, SBI Life Insurance declared a dividend of ₹2.7 per share.

The company’s stock closed at ₹1,418.90 apiece on the BSE, registering a decline of nearly 1.74% from the previous close.

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SBI Life launches two new term plans with return of premiums feature

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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SBI Life Insurance, on Tuesday, January 23, launched two products– ‘Saral Swadhan Supreme’ and ‘Smart Swadhan Supreme’. These plans offer a lumpsum benefit on the policyholder’s demise during the policy term and also pays back the total premiums paid in case the life assured survives the policy term, the insurer said.

The new products cater to the needs of consumers, providing the flexibility to choose premium payment terms, policy duration, premium payment frequency etc, SBI Life said.

Commenting on the launch of both these products, Abhijit Gulanikar, President, Business Strategy, SBI Life Insurance said, “In an era where each financial decision carries weight, we believe these solutions go beyond traditional insurance. They represent a secure and tailored approach to life insurance, where protection meets convenience.”

A look at features of ‘SBI Life – Saral Swadhan Supreme’ and ‘SBI Life – Smart Swadhan Supreme’:

• Premium Flexibility: Policyholders can opt for regular premium payments or choose a limited premium payment term of 7, 10, or 15 years.
• Policy Term: A flexible policy term ranging from 10 to 30 years, offering solutions to meet diverse financial goals.
• Maturity Benefit: Upon maturity, policyholders are entitled to receive 100% of the total premiums (total of all the premiums received, excluding any extra premium, any rider premiums and taxes) paid during the policy’s duration.
• Sum assured: Both these policies offer a minimum sum assured of ₹25 lakh, however, while SBI Life – Saral Swadhan Supreme is capped at ₹50 lakh, SBI Life – Smart Swadhan Supreme has no upper limit for the maximum sum assured.
• Tax Benefits: As per the prevailing norms under the Income Tax Act, 1961.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

October life insurance data: LIC is the only life insurer to see a fall in premium collections this year so far

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The life insurance industry only managed to grow its premium collection in single digit for the month of October. The premium collection for the life insurance industry in the month of October grew by 8% and so far in FY24, the premium collection at industry level has seen a decline of 10% on a year-on-year basis. Life insurers have managed to collect a total premium of ₹26,819 crore in October and₹ 1.85 lakh crore so far in FY24.

The data for total industry premium collection only provides half the picture that’s because private life insurance companies performed extremely well in October.

The premium collection for private life insurance companies in October grew by 24% on a year-on-year basis and for FY24 so far the premium collection saw a growth of 15%.

The largest life insurer-LIC, once again proved to be a drag of the industry premium collection numbers. The premium collection for LIC in the month of October fell by 2% and for the first seven months of FY24 premium collection dropped by as much as 23%. LIC saw a mediocre growth of 2% in its Retail Annualised Premium Equivalent (APE).

SBI Life Insurance and Max Life Insurance saw a very strong performance in October. SBI Life saw a 40% growth in its October premium and 26% in the premium growth for the financial year so far. SBI Life Insurance also grew its retail APE by 16% in the month of October on a year-on-year basis.

Max Life Insurance also posted 36% growth in its October premium and 28% growth in premiums for the first seven months of FY24. Max Life Insurance managed to grow its Retail APE by 38% in October on a year-on-year basis.

HDFC Life Insurance and ICICI Prudential Life Insurance also posted a good set of premium collection numbers. For HDFC Life, premiums in October grew by 12% and in FY24 so far by 14%. The company also managed to grow its October Retail APE by 17%. ICICI Prudential Life’s October premium grew by 10% and for FY24 the premium collection stood at 2%. The company posted a strong Retail APE of 21% in October.

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SBI Life Q2 results: Net profit flat at ₹380 crore, net premium income rises 22%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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SBI Life Insurance on Friday, October 27, reported 0.8% rise in net profit to ₹380 crore in the quarter ended September 2023, compared with ₹377 crore in the year-ago period. The net premium income increased 22% year-on-year (YoY) to Rs 20,050 crore.

One of the key indicators of an insurance company’s financial stability is its solvency ratio. SBI Life Insurance’s solvency ratio stood at 212% for the quarter ending September 2023. This figure, while strong, represented a slight decline from the 219% solvency ratio recorded during the corresponding period in the previous year.

Customer retention, as measured by the 13th-month persistency ratio, exhibited significant improvement. The persistency ratio increased by 178 basis points to 83.32%. Furthermore, the 61st-month persistency ratio also showed growth, rising to 56.10% from 52.79%.

Its assets under management (AUM) rose 22% to ₹3.45 lakh crore, as of September 2023 with a debt-equity mix of 68:32.

For the half-year ended September 30, 2023, SBI Life Insurance achieved a market share of 27.3% in Individual New Business Premium, with a total premium collection of ₹10,170 crore. This marked 20% growth in this segment. The company reported growth rate of 21% in the Annualized Premium Equivalent (APE), which reached ₹8,260 crore. The Protection Annualised Premium Equivalent (APE) segment exhibited growth at 39%, totaling ₹1,070 crore.

SBI Life’s Value of New Business (VoNB) showed steady growth, standing at ₹2,360 crore with a 12% increase. The VoNB Margin remained robust at 28.6%. The Profit After Tax (PAT) for the first half of 2023 surged to ₹760 crore, reflecting 19% growth.

SBI Life Insurance’s net worth surged by 14%, growing from ₹12,210 crore as of September 30, 2022, to ₹13,970 crore as of September 30, 2023.

The shares of SBI Life ended 0.02 percent lower at ₹1,306 apiece on the BSE.

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India’s largest life insurance company has lost 4% market share in the last three months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Life Insurance Corporation of India (LIC) has seen a significant erosion in its market share between November 2022 and February 2023.

India’s largest insurance player has seen its market share drop nearly 400 basis points (bps) or 4 percent in the period mentioned above. LIC’s market share has declined from 67.73 percent at the end of November 2022 to 63.8 percent at the end of February this year.

Out of this 4 percent, nearly 1 percent market share was lost in the month of February itself.

It is important to note that the market share taken for consideration here is based on the total insurance premium collected by the life insurance industry. On the positive side though, LIC is still sitting with a market share gain of 55 basis points between April 2022 and February 2023.

From losing market share to LIC in the first half of the year, private life insurance companies have made a comeback. All listed private life insurance companies gained market share on a month-on-month (MoM) basis with HDFC Life Insurance seeing a growth of 19 basis points in its market share followed by ICICI Prudential Life Insurance and Max Life Insurance.

The private life insurance industry gained market share of almost 100 bps or 1 percent between January and February.

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So far, on a year-to-month basis, except SBI Life Insurance, all private life insurance companies have lost market share. It is only since November that these companies started regaining their lost market share.

Since November 2022, SBI Life Insurance gained market share of 89 basis points followed by HDFC Life Insurance, which gained market share of 72 basis points.

Overall the private life insurance industry gained 400 bps or 4 percent market share in the last three months.

Going forward, March will be an important month to track as it would be the last month before the new taxation rules on large ticket savings life insurance kicks in.

Also Read | Total life insurance industry premium falls 17% in February

Market share amongst life insurance companies could move significantly depending on which company sells more of the large ticket policies.

Shares of LIC are trading 0.9 percent lower at Rs 593.40. The stock has declined 16 percent so far this year.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Total life insurance industry premium falls 17% in February

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The total life insurance premium lowered by 17 percent year-on-year (YoY) in February, according to the provisional data. The private life insurance premium was 10 percent up, while retail annual premium equivalent (APE) was 18 percent up YoY. In individual companies, the premium was 32 percent down in case of LIC. The February retail APE was 3 percent YoY down for LIC.

For HDFC Life and Exide Life insurance, the premium was 9 percent YoY up in February. However, the premium up to February was 7 percent YoY up. The retail APE was 38 percent up YoY in the month.

The premium was 1 percent down in February in case of ICICI Prudential Life Insurance. However, the premium up to February was 9 percent up YoY. The retail APE was 7 percent up YoY in the month.

Max Life Insurance, on the other, reported premium rise of 4 percent in the month. Up to February, the premium was 7 percent up and retail APE was reported 6 percent up.

Meanwhile, SBI Life Insurance reported premium rise of 7 percent in the month. Up to February, the premium was 15 percent up and retail APE was reported 02. percent down.

The general insurance trend for the month of February, on the other hand, presented a mixed picture as the overall premium has increased 20 percent year-on-year while it’s down 22 percent on a sequential basis. For health insurance, the sector has seen a growth of 27 percent year-on-year while it’s down 9 percent month-on-month. The month of February being smaller than January in the number of days, can also be one of the reasons for the premium being lower month-on-month.

The private general insurer ICICI Lombard has reported a rise of 10 bps in market share despite a fall of 5 percent in premium year-on-year and 36 percent month-on-month. Star Health has witnessed a drop of 17 bps in market share with premium rising 16 percent year-on-year while on a sequential basis, the premium has slipped one percent.

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The three catalysts that will drive SBI Life shares higher, according to Goldman Sachs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”SBI Life Insura” isinid=”INE123W01016″ bseid=”540719″ nseid=”SBILIFE” sector=”” exchange=”nse”]

Brokerage firm Goldman Sachs has added SBI Life Insurance to its conviction list expecting its headwinds to abate in financial year 2024.

The firm lists continued market share gains, favourable interest rate trajectory and consensus upgrades as the three catalysts that will drive the company’s shares higher going forward.

Goldman Sachs has raised its price target on SBI Life Insurance to Rs 1,600 from the earlier target of Rs 1,440, implying a potential upside of 25 percent from current levels.

Over the last three months, SBI Life has underperformed the Nifty 50 index by 7 percent. Goldman Sachs attributes this underperformance to investor concerns around slower topline growth, rising interest rates and evolving distribution regulations.

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Based on its differentiated analysis on individual product market structures and the scope for monetising the SBI network, Goldman Sachs projects SBI Life’s topline or Annual Premium Equivalent (APE) to increase at a compounded growth rate of 22 percent over financial year 2025. It also expects Value of New Business (VNB) margin to increase 110 basis points over the same period on better mix and operating leverage.

“We believe the market is under appreciative of the scope for market share gains and margin expansion,” Goldman wrote in its note.

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At 2.1 times price-to-enterprise value and 10 times price-to-value of new business, Goldman Sachs finds SBI Life’s valuations to be attractive. In a bull case scenario, the potential upside of the stock increases to nearly 40 percent.

Among the key risks highlighted for the stock include the increase in banca channel costs, over dependence on ULIP segment and interest rate risk.

Shares of SBI Life Insurance are off opening highs, trading 0.3 percent higher at Rs 1,288.95.

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SBI Life Insurance profit rises 53% in September quarter as premiums rise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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SBI Life Insurance on Friday reported a 53 percent jump in second-quarter profit on Friday, helped by a rise in premiums and as its value of new business grew. Insurance penetration has traditionally been low in India, but that is slowly changing, especially as more people rushed to buy new policies after the pandemic.

The new business premium increased by 8.1 percent at Rs 7,500 crore versus Rs 6,940 crore year-on-year.

The annualised premium equivalent (APE) was 1.3 percent down at Rs 3,930 crore versus Rs 3,980 crore year-on-year. The value of new business (VNB) was 24 percent up at Rs 1,240 crore versus Rs 1,000 crore year-on-year.

The VNB margin stood at 31.5 percent versus 25.1 percent year-on-year.

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VNB margin indicates the profit margin of life insurance company. It is calculated by dividing the Value of New Business by Annualized Premium Equivalent (Regular Premium +10 percent of Single Premium).

“The company has maintained its leadership position in Individual Rated Premium of Rs 60.5 billion with 23.7 percent private market share in H1 FY 23,” SBI Life said in an exchange filing.

Its assets under management (AUM) rose by 16 percent year-on-year (YoY) to Rs 2,826.3 billion in Q2 with a debt-equity mix of 71:29. The insurer’s protection individual new business premium registered a growth of 17 percent and stood at Rs 434 crore in Q2.

Its VoNB Margin increased by 630 bps to 31 percent, it said.

The company’s net worth increased by 12 percent from Rs 109.1 billion as on September 30, 2021 to Rs 122.1 billion as on September 30, 2022. The robust solvency ratio stood at 2.19 as on September 30, 2022 as against the regulatory requirement of 1.50 indicating strong financial position of the company, SBI Life Insurance said.

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Bulls give SBI Life a big lift as jump in new policies boosts margin

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of SBI Life Insurance Company Ltd surged in early morning deals on Friday, boosted by positive brokerage views and a higher target on stock price a day after the insurance firm posted strong results.

SBI Life’s net profit for the April-June quarter jumped 18 percent to Rs 262.5 crore percent year-on-year (YoY), aided by growth in premium income. It had posted Rs 223.16 crore as net profit in the same quarter a year ago.

SBI Life’s new business premiums surged 67 percent YoY to Rs 5,590 crore in the period against Rs 3,350 crore a year ago in the June quarter. The renewal premiums were up 14 percent.

SBI Life’s value of new business (VoNB—a measure of the profitability of the new business written in a period)—increased by 130 percent to Rs 880 crore from Rs 380 crore in the year-ago period. The VoNB margin increased by 665 basis points to 30.4 percent against 23.7 percent.

SBI Life’s annualised premium equivalent (APE) is up 80 percent to Rs 2,900 crore in the June quarter against Rs 1,620 crore in the same period a year ago.

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Owing to the strong performance, Morgan Stanley has set a target price of Rs 1,500 per share with an ‘overweight’ stance on attractive valuations and strong fundamentals, while adding that SBI Life remains its top pick among non-bank financials.

Goldman Sachs has a ‘buy’ rating with a target price of Rs 1,400. SBI Life expects at least 25 percent growth in FY23 with scope for calibrated margin expansion on the back of improving product mix.

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Citi has raised the target price to Rs 1,665 per share with a ‘buy’ rating noting that the company is in a sweet spot to deliver over 18 percent medium-term operating return on embedded value. Citi also added that SBI Life can drive margin expansion higher than peers as SBI is a key backbone to its strong performance.

SBI Life share price was quoting at Rs 1,295 apiece on BSE, up 8.7 percent at 11.03 am.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SBI Life March quarter net rises 26% to Rs 672 cr

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”SBI Life Insura” isinid=”INE123W01016″ bseid=”540719″ nseid=”SBILIFE” sector=”Diversified” exchange=”nse”]

SBI Life Insurance (SBI Life) on Thursday reported a 26.3 percent rise in its net profit at Rs 672 crore for quarter ended March 2022. The life insurer had posted a net profit of Rs 532 crore in the year-ago quarter.

Total income of the company during the January-March quarter of 2021-22 rose to Rs 21,427.88 crore, from Rs 20,896.70 crore in the same period of 2020-21, SBI Life said in a regulatory filing. Net premium income in Q4FY22 stood at Rs 17,433.77 crore, up by 12.07 percent from Rs 15,555.74 crore in the year-ago period.

For the full year 2021-22, the company’s net profit grew to Rs 1,506 crore, as against Rs 1,456 crore in 2020-21. Income during the year rose to Rs 83,027.20 crore from Rs 82,084.89 crore a year ago. SBI Life said it registered a growth of 39 percent in the value of new business (VoNB) to Rs 3,700 crore in FY22.

Also Read | Axis Bank Q4 results: Net profit jumps 54% YoY to Rs 4,117.8 crore, NII rises 17%; beats estimates

VoNB is the present value of expected future earnings from new policies written during a specified period. It reflects the additional value expected to be generated through the writing of new policies during a specified period. The insurer said it maintained private market leadership in individual rated premiums of Rs 12,870 crore, with 23.4 percent share.

There was strong growth in individual new business premium of 32 percent to Rs 16,500 crore in 2021-22 and strong growth in protection of new business premium of 24 percent to Rs 3,050 crore. New business premium (NBP) is the insurance premium due in the first policy year.

The company’s 13th-month persistency ratio stands at 85.18 percent, it added. Persistency ratio reflects the number of policyholders who paid their renewal premium. Assets under management (AUM) grew by 21 percent to Rs 2.7 lakh crore as of March 31, 2022, SBI Life said.

Also Read | HDFC AMC Q4 results: Net profit grows 8.7% YoY to Rs 343.55 crore

SBI Life scrip closed at Rs 1,116.55 apiece on BSE, up by 3.99 percent from previous close.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow