Capitaline

Results 26-Jul-23

Analysis

SBI Life Insurance Company

Healthy growth and margins

SBI Life Insurance Company has posted 45% increase in the net profit of Rs 381.04 crore in the quarter ended June 2023 (Q1FY2024). The company has posted 19% increase in net premium collection to Rs 13104.49 crore in Q1FY2024, aided by 28% growth in the renewal business to Rs 7348 crore, while new business premium jumped 11% to Rs 6210 crore in Q1FY2024.

The Company has maintained its leadership position in Individual Rated Premium of Rs 2670 crore with 23% private market share in Q1FY24. There is strong growth in Individual New Business Premium by 18% to Rs 4060 crore in Q1FY24. New Business Premium (NBP) increased 11% to Rs 6210 crore in Q1FY24 aided by growth in Single premium business by 18%.

Protection New Business Premium has increased by 12% from Rs 700 crore in Q1FY23 to Rs 780 crore in Q1FY24 due to growth in individual protection business by 5% to Rs 210 crore and growth in group protection business by 15% to Rs 570 crore in Q1FY24.

Gross Written Premium (GWP) has grew by 19% to Rs 13560 crore in Q1FY24 mainly due to 18% growth in Single Premium (SP) and 28% growth in Renewal Premium (RP) in Q1FY24.

Strong growth in 37th month and 61st month persistency (based on premium considering Regular Premium/ Limited Premium payment under individual category) in Q1FY24 by 262 bps and 645 bps respectively due to our focus on improving the quality of business and customer retention.

13th month persistency (based on premium considering Single Premium and Fully Paid-up policies & group business where persistency is measurable) is 88.6% in Q1FY24 vs 88.7% in Q1FY23.

VoNB eased by 1% to Rs 870 crore for Q1FY24. VoNB margin stands at 28.8% in Q1FY24.

AuM grew by 25% from Rs 262350 crore end June 2022 to Rs 328280 crore end June 2023 with debt-equity mix of 69:31. Over 94% of the debt investments are in AAA and Sovereign instruments.

The Company’s net worth increased by 15% from Rs 11760 crore end June 2022 to Rs 13530 crore end June 2023.

Robust solvency ratio of 2.15x end June 2023 as against the regulatory requirement of 1.50x indicating strong financial position of the Company.

The Company has strong distribution network of 289,162 trained insurance professionals consisting of agents, CIFs and SPs along with widespread operations with 996 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.

APE channel mix for Q1FY24 is bancassurance channel 65%, agency channel 25% & other channels 10%.

NBP of Agency channel has increased by 23% to Rs 1160 crore in Q1FY24 and NBP of Banca channel has increased by 32% to Rs 3840 crore in Q1FY24 as compared to same period last year.

Total Cost ratio for Q1FY24 is 10.8% against 11.2% for Q1FY23. Commission ratio for Q1FY24 is 4.0% against 4.6% for Q1FY23. Operating Expense ratio for Q1FY24 is 6.8% against 6.6% in Q1FY23

Indian Embedded Value (IEV) calculated stood at Rs 472.5 end June 2023.

Financial Performance FY2023

Profit after Tax (PAT) increased 14% to Rs 1720.57 crore for FY23. The company has posted strong growth in Individual New Business Premium by 27% to Rs 20910 crore in FY23. New Business Premium (NBP) has grew by 16% to Rs 29590 crore in FY23 aided by growth in Regular premium business by 17%.

Protection New Business Premium has increased by 19% from Rs 3050 crore in FY22 to Rs 3640 crore in FY23 due to growth in individual protection business by 6% to Rs 1000 crore and growth in group protection business by 25% to Rs 2640 crore in FY23.

Gross Written Premium (GWP) has grew by 15% to Rs 67320 crore in FY23 mainly due to 17% growth in Regular Premium (FYP) and 13% growth in Renewal Premium (RP) in FY23.

APE channel mix for FY23 is bancassurance channel 64%, agency channel 26% & other channels 10%.

NBP of Agency channel has increased by 19% to Rs 5490 crore in FY23 and NBP of Banca channel has increased by 33% to Rs 17830 crore in FY23 as compared to same period last year.

Total Cost ratio for FY23 is 9.6% against 8.8% for FY22. Commission ratio for FY23 is 4.5% against 3.7% for FY22. Operating Expense ratio for FY23 is 5.1% against 5.1% in FY22.

VoNB increased by 37% to Rs 5070 crore for FY23. VoNB margin increased by 420 bps to 30.1% in FY23.

SBI Life Insurance: Results Policyholders Account
	2306 (3)	2206 (3)	Var %	2303 (12)	2203 (12)	Var %
Premium earned (net)	13104.49	11036.02	19	66581.00	58432.29	14
Income from Investments	14578.90	-6405.66	LP	13260.14	23567.95	-44
Other income	8.57	10.76	-20	49.85	44.81	11
Contribution from the Shareholders` account	0.00	0.00	-	1707.49	982.15	74
Total Income	27691.96	4641.12	497	81598.48	83027.20	-2
Commission	521.15	507.57	3	2935.96	2084.05	41
Op. expenses related to Insurance business	939.75	765.68	23	3536.00	3048.69	16
Others	184.97	161.19	15	832.32	782.87	6
Benefits paid (Net)	7103.43	5171.72	37	30287.46	31339.82	-3
Change in valuation of policy liabilities	18519.66	-2271.05	PL	41003.10	43761.85	-6
Provision for taxation	42.90	33.44	28	147.40	126.16	17
Total Expense	27311.86	4368.55	525	78742.24	81143.44	-3
PAT	380.10	272.57	39	2856.24	1883.76	52
Transfer to Shareholders` account	189.04	100.34	88	2707.15	1732.43	56

SBI Life Insurance: Results Shareholders Account
	2306 (3)	2206 (3)	Var %	2303 (12)	2203 (12)	Var %
Amounts transferred from Policyholders` account	189.04	100.34	88	2707.15	1732.43	56
Income from investments	212.04	176.17	20	795.25	988.41	-20
Total Income	401.08	276.51	45	3502.40	2720.84	29
Expenses (apart from Insurance)	7.94	8.17	-3	37.23	156.98	-76
Contribution to policyholders account	0.00	0.00	-	1707.49	982.15	74
Others	3.40	0.92	270	-0.76	20.96	LP
Total Expenses	11.34	9.09	25	1743.96	1160.09	50
PBT	389.74	267.42	46	1758.44	1560.75	13
Tax	8.70	4.57	90	37.87	54.76	-31
PAT	381.04	262.85	45	1720.57	1505.99	14
EPS (Rs)*	15.2	10.5		17.2	15.0
Embedded Value (Rs) per share	472.5	407.5		460.0	396.2
* on current equity of Rs 1000.97 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to Profit
Figures in crore, Source: Capitaline Corporate Database

Previous News

SBI Life Insurance Company to hold board meeting
( Corporate News - 11-Apr-24 09:27 )

SBI Life Insurance Company Ltd up for third consecutive session
( Hot Pursuit - 09-Aug-24 13:05 )

Life insurance companies new business premium income saw 1% decline in first quarter of FY24
( Insurance - 11-Jul-23 7:54 )

SBI Life Insurance Company Ltd spurts 0.68%, rises for fifth straight session
( Hot Pursuit - 02-May-23 13:00 )

SBI Life Insurance Company schedules board meeting
( Corporate News - 12-Jan-24 12:13 )

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( Results - Analysis 29-Apr-22 08:00 )

SBI Life Insurance Company announces cessation of MD
( Corporate News - 28-Sep-23 19:02 )

Board of SBI Life Insurance Company appoints MD & CEO
( Corporate News - 28-Sep-23 19:03 )

SBI Life Insurance Company Ltd drops for fifth straight session
( Hot Pursuit - 16-Jun-22 13:35 )

SBI Life Insurance Company
( Analyst Meet / AGM - Conference Call 22-Oct-22 12:04 )

SBI Life Insurance Company Ltd soars 0.55%, rises for fifth straight session
( Hot Pursuit - 18-Apr-23 13:00 )