On Friday, SBI Life Insurance reported a 53 percent jump in its net profit for second-quarter, 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 INR 7,500 crore vs INR 6,940 crore year-on-year. The annualized premium equivalent (APE) was 1.3 percent down at INR 3,930 crore versus INR 3,980 crore year-on-year. The value of new business (VNB) was 24 percent up at INR 1,240 crore versus INR 1,000 crore year-on-year. The VNB margin stood at 31.5 percent versus 25.1 percent year-on-year.
“The company has maintained its leadership position in Individual Rated Premium of INR 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 INR 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 INR 434 crore in Q2.