SBI Life Insurance Company Limited announces Q4, FY21 results

The Board of Directors of SBI Life Insurance Company Limited approved and adopted its audited financial results for the quarter and year ended March 31, 2021, following its meeting on Monday, May 03, 2021 in Mumbai.

Business growth and market share

- Gross written premium has increased by 24 % to cross Rs. 500 billion mark. The increase in GWP is mainly due to strong growth in RP by 23% from Rs. 240.4 billion in FY 2020 to Rs. 296.3 billion FY 2021.

- New Business Premium (NBP) has increased by 24% from Rs. 165.9 billion in FY 2020 to Rs. 206.2 billion in FY 2021.

- The Company has achieved market leadership in NBP with 21.9% private market share in FY 2021.

- The Company has also achieved market leadership with IRP of Rs. 102.2 billion securing 22.6% private market share in FY 2021.

Cost Efficiency

- Total Cost ratio has decreased to 8.3% in FY 2021, from 9.9% in FY 2020.

- Commission ratio has decreased to 3.5% in FY 2021 from 4.0% in FY 2020.

- Operating Expense has decreased to 4.8% in FY 2021, from 5.9% in FY 2020.

Profitability

- Value of New Business (VoNB) increased by 16% to Rs. 23.3 billion in FY 2021.

- VoNB margin increased by 170 bps from 18.7% in FY 2020 to 20.4% in FY 2021.

- Value of New Business (VoNB) increased by 20% to Rs. 26.6 billion for FY 2021 (with effective tax rate).

- Profit after Tax (PAT) grew by 2% in FY 2021 to `14.6 billion from `14.2 billion in FY 2020.

Persistency

- Strong 13th month persistency of 87.92% in FY 2021 as compared to 86.14% in FY 2020.

- Strong 37th month persistency of 74.08% in FY 2021 as compared to 71.56% in FY 2020.

- 61st month persistency has improved to 61.63% in FY 2021 as compared to 59.90% in FY 2020

Assets under Management

AuM has grown by 38% from Rs. 1,603.6 billion as on March 31, 2020 to Rs. 2,208.7 billion as on March 31, 2021 with debt-equity mix of 73:27 and more than 90% of the debt investments are in AAA and Sovereign instruments.

Financial position

- The Company's net worth increased by 19% from Rs. 87.4 billion as on March 31, 2020 to Rs. 104.0 billion as on March 31, 2021.

- The Solvency ratio as on March 31, 2021 was at 2.15 as against the regulatory requirement of 1.50.

Distribution network

- The Company has strong distribution network of 225,381 trained insurance professional and 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 FY 2021 is bancassurance channel 56%, agency channel 17%, and other channels 27%.

Shares of SBI Life Insurance Company Ltd was last trading in BSE at Rs.959.45 as compared to the previous close of Rs. 928.3. The total number of shares traded during the day was 162267 in over 6730 trades.

The stock hit an intraday high of Rs. 979.3 and intraday low of 917. The net turnover during the day was Rs. 154696965.

Source : Equity Bulls

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