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Results
28-Oct-21
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Analysis
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SBI Life Insurance Company
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Strong show with improved premium growth and margins
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SBI Life Insurance Company has posted 18%
decline in the net profit of Rs 246.62 crore in the quarter ended September
2021 (Q2FY2022). The company has posted 14% increase in net premium collection
to Rs 14660.64 crore in Q2FY2022, aided by 9% growth in the renewal business to
Rs 7775.13 crore, while new business premium surged 56% to Rs 3609.74 crore in Q2FY2022.
The company has achieved private
market leadership in Individual Rated Premium of Rs 4990 crore with 23.6%
private market share in H1FY22. The company has posted strong growth in
Individual New Business Premium by 54% to Rs 6480 crore in H1FY22.
New Business Premium (NBP) has grew by
14% to Rs 10290 crore in H1FY22 driven by strong growth in regular premium
business by 47%.
Protection New Business Premium has
increased by 33% from Rs 910 crore in H1FY21 to 1210 crore in H1FY22 due to 38%
y-o-y growth in individual protection business to Rs 370 crore and 31% y-o-y
growth in group protection business to Rs 84 crore in H1FY22.
Gross Written Premium (GWP) has grew
by 11% to Rs 23100 crore in H1FY22 mainly due to 47% growth in First Year
Premium (FYP) and 9% growth in Renewal Premium (RP) in H1FY22.
The Company has strong distribution
network of 200,190 trained insurance professionals consisting of agents, CIFs
and SPs along with widespread operations with 947 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 H1FY22 is
bancassurance channel 52%, agency channel 19% & other channels 29%. NBP of
Agency channel has increased by 60% to Rs 1914 crore in H1FY22 and NBP of Banca
channel has increased by 20% to Rs 5306 crore in H1FY22 as compared to same
period last year.
13th month persistency (based on
premium considering Single Premium and Fully Paid-up policies & group
business where persistency is measurable) is 87.66% in H1FY22 vs. 85.92% in
H1FY21 due to focus on improving the quality of business and customer
retention.
AuM grew by 31% from Rs 186360 crore end September 2020 to Rs 244180 crore end September 2021 with
debt-equity mix of 70:30. Over 95% of the debt investments are in AAA and
Sovereign instruments.
The Company’s net worth increased by
13% to Rs 10910 crore end September 2021 from Rs 9660 crore end September 2020.
Strong solvency ratio was 2.12x end
September 2021 as against the regulatory requirement of 1.50x.
The embedded value per share stood at Rs 352.8
per share end September 2021.
Financial
Performance H1FY2022
Profit after Tax (PAT) declined 32% to
Rs 470 crore for H1FY22. Value of
New Business (VoNB) increased by 64% to Rs 1220 crore in H1FY22. VoNB margin increased 300 bps from 18.8% in
H1FY21 to 21.8% in H1FY22. VoNB increased 77% to Rs 1420 crore for H1FY22 (with effective tax rate). VoNB margin increased
by 510 bps to 25.3% in H1FY22 (with effective tax rate).
Total Cost ratio for H1FY22 is 9.5%
against 8.6% for H1FY21. Commission ratio for H1FY22 is 3.6% against 3.2% for
H1FY21. Operating Expense for H1FY22 is 5.8% vis-à-vis 5.4% in H1FY21
The Company has made provision of Rs
116 crore (including interest) with
respect IRDAI order dated 11 January 2017 directing refund of administration
expenses to members of group insurance policy for Super Suraksha’ product.
Total investment income (net of
diminution provision and write-off) of Rs 18690 crore in H1FY22 comprised of Rs 18170 crore in Policyholders portfolio and Rs 520 crore in Shareholders portfolio. Investment income has increased
by 28% mainly due to profit on sale or redemption of investments
The Company has written-off investment
receivables of Rs 29 crore for
Non-Convertible Debentures (NCDs) of DHFL on settlement as per the resolution
plan. The Company has already made 100% NPA provision of Rs 53 crore in FY20 due to default in interest
and principal repayment of DHFL NCDs.
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SBI Life Insurance Company: Results Policyholders Account
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Premium earned (net)
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14660.64
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12857.95
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14
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22973.19
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20446.05
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12
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49768.28
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40324.01
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23
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Income from
Investments
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10734.43
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5590.37
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92
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18144.34
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14173.17
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28
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31456.01
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2996.79
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950
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Other income
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9.03
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9.93
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-9
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23.48
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17.09
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37
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35.81
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45.76
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-22
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Contribution from the
Shareholders` account
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0.00
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0.00
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-
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0.00
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0.00
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-
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824.79
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476.28
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73
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Total Income
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25404.10
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18458.25
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38
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41141.01
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34636.31
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19
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82084.89
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43842.84
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87
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Commission
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529.94
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414.49
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28
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791.64
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639.83
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24
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1742.53
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1566.22
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11
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Op. expenses related
to Insurance business
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747.57
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596.62
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25
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1361.24
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1142.68
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19
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2448.50
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2471.80
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-1
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Others
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158.83
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163.00
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-3
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303.94
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175.70
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73
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472.08
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677.58
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-30
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Benefits paid (Net)
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12702.07
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6426.33
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98
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17493.83
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9279.09
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89
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21582.65
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16250.93
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33
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Change in valuation of
policy liabilities
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10978.09
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10549.22
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4
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20754.73
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22241.27
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-7
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53934.16
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20604.86
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162
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Provision for taxation
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30.60
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-84.47
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-136
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66.71
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154.85
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-57
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97.56
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376.74
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-74
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Total Expense
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25147.10
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18065.19
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39
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40772.09
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33633.42
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21
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80277.48
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41948.13
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91
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PAT
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257.00
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393.06
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-35
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368.92
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1002.89
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-63
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1807.41
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1894.71
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-5
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Transfer to
Shareholders` account
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134.25
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113.32
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18
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93.03
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395.54
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-76
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1678.76
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1462.65
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15
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SBI Life Insurance Company: Results Shareholders Account
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Amounts transferred
from Policyholders` account
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134.25
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113.32
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18
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93.03
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395.54
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-76
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1678.76
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1462.65
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15
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Income from
investments
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242.16
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193.38
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25
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526.87
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289.81
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82
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694.79
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483.49
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44
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Total Income
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376.41
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306.70
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23
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619.90
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685.35
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-10
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2373.55
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1946.14
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22
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Expenses (apart from
Insurance)
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124.51
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8.40
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1382
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134.59
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17.93
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651
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30.98
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48.30
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-36
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Contribution to policyholders
account
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0.00
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0.00
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-
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0.00
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0.00
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-
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824.79
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476.28
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73
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Others
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0.00
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-1.27
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-
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0.00
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-19.81
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-
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-24.68
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8.02
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LP
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Total Expenses
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124.51
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7.13
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1646
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134.59
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-1.88
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PL
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831.09
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532.60
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56
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PBT
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251.90
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299.57
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-16
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485.31
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687.23
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-29
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1542.46
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1413.54
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9
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Tax
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5.28
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-0.16
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PL
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15.53
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-3.37
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PL
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86.61
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-8.63
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PL
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PAT
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246.62
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299.73
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-18
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469.78
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690.62
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-32
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1455.85
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1422.17
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2
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EPS (Rs)*
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9.9
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12.0
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9.4
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13.8
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14.6
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14.2
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* on current equity of
Rs 1000.21 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to
Profit
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Figures in crore,
Source: Capitaline Database
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