 "SBI Life Insurance Q4 results: Net profit rises 8% to Rs 811 crore")
The net profit of SBI Life Insurance Company increased to Rs 811 crore during the quarter ended Q4 FY24, 8 per cent higher than the Rs 776 crore in the year-ago period on the back of a decline in expenses.
Sequentially, the profit expanded by 152 per cent from Rs 321 crore in the third quarter of financial year 2024.
Net premium income of the largest private life insurer rose 26.23 per cent year-on-year (Y-o-Y) to Rs 25,116 crore in the reporting quarter from Rs 19,896 crore in Q4 of FY23.
The annualised premium equivalent (APE) increased 17 per cent to Rs 5,330 crore from Rs 4,550 crore in the year-ago period. Similarly, for the entire FY24, APE increased by 17 per cent to Rs 19,720 crore.
The APE channel mix for FY24 had 62 per cent business from bancassurance channel, 25 per cent from agency channel and the remaining 13 per cent from other channels.
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Furthermore, SBI Life said it continues to hold its leadership position in individual-rated premium at Rs 17,230 crore with 23.3 per cent private market share in FY24.
Expenses declined by 10 per cent in Q4 to Rs 1,676.44 crore. It was Rs 1,873.18 crore in the corresponding year-ago period.
During the quarter under review, the value of new business (VNB) inched up by 4.86 per cent to Rs 1,510 crore from Rs 1,440 crore in the last quarter of FY23.
A key measure of profitability — VNB margin — fell to 28.33 per cent from 31.65 per cent across the time period due to the product mix.
The solvency ratio of the insurer stood at 196 per cent in the quarter under review against 215 per cent in the year-ago period. The minimum regulatory requirement is 150 per cent.
The 13th month persistency ratio stood at 85.76 per cent in Q4 compared to 84.35 per cent in the year-ago period.