SBI Life Q1 results: Net profit rises 5% to ₹390 crore

SBI Life Insurance on Tuesday reported a 5% increase in net profit at ₹390 crore for the first quarter of the current fiscal.

The private sector life insurer, promoted by the country's largest lender SBI, had posted a net profit of ₹370 crore during the corresponding April-June period of 2019-20.

The company's gross written premium during Q1 FY21 rose by 14% to ₹7,640 crore as against ₹6,690 crore in the same quarter of the preceding fiscal, SBI Life said in a release.

Renewal premium income grew by 30% to ₹4,580 crore, but there was a fall of 3% in new business premium income at ₹3,060 crore during the quarter under review.

There was a decline of 29% in individual new business premium, while individual rated premium slipped by 36%.

Besides, annualised premium equivalent (APE-- measure of new business written by a life insurance company) dropped by 32% and total protection new business premium (individual and group) fell by 33%.

The share of total protection new business premium fell to 9.6% as on June 30, 2020 from 13.8% earlier.

SBI Life said it had private market leadership in total new business premium with 23.9% market share as on June 30, 2020.

The assets under management rose by 19% to ₹1.75 trillion as on June 30, 2020, from ₹1.47 trillion by the end of June 2019.

Solvency ratio as on June 30, 2020 stood at 2.39 as against the regulatory requirement of 1.50, it added.

Incorporated in 2000, SBI Life is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif SA.

Stock of SBI Life closed 3.96% higher at ₹888.25 apiece on BSE.