SBI Life posts Rs 870 crore profit in 9 months of FY19, up 13%

New business premium up 32 per cent to Rs 9,470 crore in the nine months of this fiscal; gross written premium was Rs 21,660 crore, up 34.5 per cent

Private life insurer, SBI Life Insurance, has reported a profit after tax of Rs 870 crore in the first nine months of FY19, up 13 per cent in the same period of FY18.

The new business premium of the life insurer was up 32 per cent from Rs 7,200 crore to Rs 9,470 crore in the nine months of this fiscal. The gross written premium of the company was Rs 21,660 crore, up 34.5 per cent from Rs 16,060 crore.

The net worth of the company rose 14 per cent from Rs 6,440 crore to Rs 7,330 crore and the assets under management of the company saw an increase 20.2 per cent from Rs 1.1 trillion to Rs 1.34 trillion.

The thirteen-month persistency ratio, which is a measure of the total business that the insurance company is able to retain without policies getting lapsed in a year, saw an improvement 83.33 per cent from 81.51 per cent in the first nine months of FY 19.

Solvency ratio, which is a measure of a company’s cash flow that is sufficient to meet its short-term and long-term liabilities, rose marginally from 2.06 per cent to 2.23 per cent

Return of equity of the life insurer declined slightly from 17.1 per cent to 16.7 per cent.

The life insurer has also has registered robust growth in savings and protection business. Total protection new business premium increased by 170.1 per cent from  Rs 390 crore in 9MFY18 to Rs 1,060 crore in 9MFY19.

The share of total protection new business premium (individual and group) rose from 5.4 per cent in 9MFY18 to 11.2 per cent in 9MFY19.

The life insurers shares ended 0.77 per cent lower at Rs 619.80 on the BSE on Friday.