The company has continued to post healthy 28% growth in net premium collection to Rs 11759.66 crore in Q3FY2020, aided by new business growth of 27% to Rs 4970 crore and 29% surge in renewal business to Rs 6790 crore.

New Business APE increased by 17% to Rs 3380 crore in Q3FY2020 from Rs 2900 crore in Q3FY2019.

The Value of New Business (VoNB) increased 19% to Rs 620 crore in Q3FY2020, while VoNB margins improved to 18.3% in 9MFY2020 from 17.5% in 9MFY2019.

Individual rated premium (IRP) has increased 29% to Rs 3100 crore in Q3FY2020, while Individual New Business Premium has moved up 11% to Rs 3540 crore in Q3FY2020.

Total protection new business premium has increased by 9% to Rs 510 crore in Q3FY2020 from Rs 470 crore in Q3FY2019. The share of total protection NBP (individual and group) has eased to 10.3% in Q3FY2020 from 11.2% in Q3FY2019.

AuM has grown by 22% to Rs 164190 crore end December 2019 from Rs 134150 crore end December 2018 with debt-equity mix of 76:24. 93% of the debt investments are in AAA and Sovereign instruments.

The company has exhibited strong 13th month persistency of 85.71% in 9MFY2020 as compared to 83.33% in 9MFY2019. 49th month persistency has improved to 67.35% in 9MFY2020 as compared to 65.28% in 9MFY2019.

The Company's net worth increased by 16% from Rs 7330 crore end December 2018 to Rs 8480 crore end December 2019. The solvency ratio end December 2019 was at 2.30x as against the regulatory requirement of 1.50x.

The Company has strong distribution network of 180,525 trained insurance professional and widespread operations with 923 offices across country.

The Company has diversified distribution network comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing firms, web aggregators and direct business. NBP channel mix for 9MFY2020 is bancassurance channel 60%, agency channel 19%, and other channels 21%.

YTD Financial Performance

SBI Life Insurance Company has posted 3% growth in the net profit to Rs 891.51 crore in 9MFY2020.

New Business Premium (NBP) has shown strong growth increased by 35% from Rs 9470 crore in 9MFY2019 to Rs 12790 crore in 9MFY2020. Individual New Business Premium has increased by 27% from Rs 6600 crore in 9MFY2019 to Rs 8390 crore in 9MFY2020. Individual Rated Premium (IRP) has increased by 19% from Rs 6110 crore in 9MFY2019 to Rs 7280 crore in 9MFY2020.

The Company has achieved market leadership based on New Business Premium (NBP), Individual New Business Premium and Individual Rated Premium in 9MFY2020. The Company has increased its private market share based on New Business Premium (NBP) from 20.0% in 9MFY2019 to 22.3% in 9MFY2020.

The Company has registered growth in savings and protection business reflecting balanced product mix. Total protection new business premium has increased by 37% from Rs 1060 crore in 9MFY2019 to Rs 1440 crore in 9MFY2020.

APE has increased by 22% from Rs 6600 crore in 9MFY2019 to Rs 8050 crore in 9MFY2020. GWP increased by 33% to Rs 28700 crore in 9MFY2020 mainly due to strong growth in NBP by 35% from Rs 9470 crore in 9MFY2019 to Rs 12790 crore 9MFY2020.

Total Cost ratio has decreased to 10.0% in 9MFY2020, from 11.0% in 9MFY2019. Commission ratio has decreased to 3.9% in 9MFY2020, from 4.1% in 9MFY2019. Operating Expense has decreased to 6.1% in 9MFY2020 from 6.9% in 9MFY2019.

Value of New Business (VoNB) increased by 27% to Rs 1470 crore in 9MFY2020. VoNB margin increased 80 bps from 17.5% in 9M FY2019 to 18.3% in 9MFY2020. VoNB increased 27% to Rs 1650 crore for 9MFY2020 (with effective tax rate). VoNB margin increased from 19.6% in 9MFY2019 to 20.5% in 9MFY2020 (with effective tax rate).

During the period ended December 2019, the Company has classified its investment in Dewan Housing Finance (DHFL) bonds as NPA on account of default in interest and principal repayment of non-convertible debenture (NCDs) held in Unit Linked Funds. The provision of Rs 157 crore (including MTM Change in Fair value of Rs 116 crore) under unit linked fund and Rs 113 crore under Shareholders funds in 9MFY2020 has been recognized.