SBI Life second quarter net profit declines 18% to Rs 247 crore

SBI Life reported a 17.7 per cent decline in its net profit to Rs 247 crore in the second quarter ended September 2021.

The private sector insurer had posted a net profit of Rs 300 crore in the corresponding quarter of the previous financial year.

The company's net premium income during the July-September quarter of FY22, however, rose to Rs 14,660.64 crore from Rs 12,857.95 crore in the corresponding period of FY21, SBI Life said in a regulatory filing.

Total income rose to Rs 25,404.10 crore, compared with Rs 18,458.25 crore.

The insurer's provisioning for doubtful debts, including bad debts written off, during the reported quarter was raised to Rs 29.22 crore, compared with Rs 4 lakh put aside in the September 2020 quarter.

SBI Life has said it has kept an additional reserve amounting to Rs 266.09 crore resulting from the COVID-19 pandemic, over and above the policy-level liabilities, which have been provided for as at September 30, 2021.

For the half year ended September 30, 2021, SBI Life reported a 77 per cent growth in value of new business at Rs 1,420 crore.

The net profit, however, fell 32 per cent to Rs 470 crore during the half year as against Rs 690 crore in the year-ago period.

Its assets under management (AUM) grew 31 per cent to Rs 2,44,180 crore at the end of September 2021 from Rs 1,86,360 crore a year ago.

"The company has achieved private market leadership in individual rated premium of Rs 49.9 billion (Rs 4,990 crore) with 23.6 per cent private market share in H1FY22.

"New business premium (NBP) has grown 14 per cent to 102.9 billion (Rs 10,290 crore) in H1FY22 driven by strong growth in regular premium business by 47 per cent," SBI Life said.

Shares of SBI Life on Wednesday closed at Rs 1,183.95 apiece on the BSE, up 1.05 per cent from the previous close.