BackSBI Life net plunges 40.2% to ₹233 crore in Dec quarter
Net premium income rose to ₹13,766.49 crore in Q3 from ₹11,694.51 crore a year agoDespite operating expenses coming down to 5.1% from 6%, the net income tanked as higher provisions and claims appended the overall numbers
PremiumPrivate life insurer SBI Life on Friday reported a steep 40.2% plunge in net income to ₹232.85 crore in the December quarter, mainly due to a massive rise in coronavirus related provisions.
Net premium income rose to ₹13,766.49 crore in Q3 from ₹11,694.51 crore a year ago.
The insurer said it has assessed the overall impact of the pandemic on its business and financials, including valuation of assets, policy liabilities and solvency for the reporting period and made adequate provisions.
Based on the evaluation, the company has kept an additional reserve of ₹70.38 crore for the pandemic - over and above the policy level liabilities, it added.
New business margin rose 100 bps to 19.3%, while assets under management has crossed the ₹2 lakh crore mark, clipping at 28% year-on-year.
Its market share among private players rose to 23.7% in terms of new business premium.
Renewal premium grew by 27%, the company said in a statement, adding its overall market share in total new business premium rose ₹23.7% to ₹14,440 crore.
Gross written premium increased 21% to ₹34,610 crore mainly due to strong growth in renewals, which rose 27% from ₹15,910 crore to ₹20,170 crore.
Total cost ratio has come down to 8.5 from 10, and the commission ratio declined to 3.4 from 4.
Despite operating expenses coming down to 5.1% from 6%, the net income tanked as higher provisions and claims appended the overall numbers.
The solvency ratio stood at 2.34 as against the regulatory requirement of 1.50.
SBI Life counter closed over 2% down at ₹861.60 per scrip on the BSE, while the index tanked over 746 points on profit booking.
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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
