SBI Life Insurance posted a net profit of Rs 532.38 crore for the March quarter (Q4), a tad above Rs 530.67 crore in the year-ago period.
The life insurer had a net premium of Rs 15,555.74 crore against Rs 11,862.98 crore in the same quarter last year.
For FY21, the value of new business (VoNB) increased by 16 percent year-on-year to Rs 2,330 crore. VoNB margin increased by 170 bps from 18.7 percent in FY20 to 20.4 percent in FY21.
VoNB is the present value of expected future earnings from new policies written during a specified period and it reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.
The 13th month persistency grew to 87.92 percent in FY21 as against 86.14 percent a year ago. The 61st month persistency rose marginally to 61.63 percent in FY21 compared to 59.9 percent in FY20.
SBI Life's assets under management grew by 38 percent YoY to Rs 2.2 lakh crore as on March 31, 2021. Here the debt-equity mix was 73:27, with more than 90 percent of the debt investments in AAA and sovereign instruments.
The solvency ratio as on March 31, 2021 was at 2.15 as against the regulatory requirement of 1.50.
The board, in its meeting held on March 25, 2021, had declared an interim dividend of Rs 2.50 per equity share of face value of Rs 10 each for FY21.
Analysts had estimated that the life insurer would post healthy growth in key earnings parameters with value of new business (VNB) increasing around 43 percent YoY in the quarter ended March 2021.
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