SBI Life Insurance jumps after Q2 results

SBI Life Insurance Company rose 3.91% to Rs 872.50 after the insurer declared its Q2 figures after trading hours yesterday, 15 October 2019.

New Business Premium (NBP) jumped 40% to Rs 7,820 crore in the first half of the year ending March 2020 (H1 FY2020) over Rs 5,570 in H1 FY2019.

The company said it attained leadership position in Individual NBP amongst private life insurers with a growth of 30% and market share of 22.3%.

Renewal Premium (RP) soared 33% to Rs 9,120 crore in H1 FY2020 compared with Rs 6,870 in H1 FY2019.

The Gross Written Premium (GWP) surged 36% to Rs 16,940 in H1 FY2020 as against Rs 12,440 in H1 FY2019.

The operating expense ratio fell to 6.5% in H1 FY2020 over 7.8% in H1 FY2019. Using the effective tax rate system, the Indian Embedded Value (IEV) jumped 24% to Rs 26,150 in in H1 FY2020 as against Rs 21,170 in H1 FY2019. The Value of New Business (VoNB) grew 33% to Rs 940 crore in H1 FY2020 compared with Rs 710 crore in H1 FY2019. The New Business (VoNB) margin improved to 20.2% in H1 FY2020 over 19.2% in H1 FY2019.

Asset under Management (AuM) has grown by 23% to Rs 1,54,760 crore this quarter as against Rs 1,26,170 crore in the corresponding quarter previous year. Meanwhile, the debt-equity mix stood at 77:23. The firm has further stated that 90% of the debt investments are in AAA and Sovereign instruments.

Meanwhile, the S&P BSE Sensex was up 70 points or 0.18% to 38,576.31.

On the BSE, 76,506 shares were traded in the counter so far compared with average daily volumes of 45,241 shares in the past two weeks. The stock hit an intraday high of Rs 879, which is also an all-time record high for the counter. It hit an intraday low of Rs 831 so far during the day. The stock hit a 52-week low of Rs 495 on 19 October 2018.

On a standalone basis, SBI Life Insurance Company's net profit slumped 48.2% to Rs 129.84 crore on 32.1% surge in total income to Rs 12,889.78 crore in Q2 September 2019 compared with Q2 September 2018.

SBI Life Insurance Company offers life insurance. The company has a range of services, such as premium calculator, retirement planner, child education planner and tax calculator. The firm has a distribution network of 178,589 trained insurance professional and operations with 923 offices across country.

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