NE BUSINESS BUREAU
MUMBAI, MAY 6
SBI Life Insurance Company net profit rose 15.94 percent to Rs 530.67 crore in Q4 March 2020 as against Rs 457.68 crore in Q4 March 2019.
Net premium earned increased by 4.67 percent to Rs 11,862.98 crore in Q4 March 2020 from Rs 11,333.02 crore in Q4 March 2019. Profit before Tax (PBT) jumped 8.22 percent to Rs 521.59 crore in Q4 March 2020 over Q4 March 2019.
Net profit rose 7.18 percent to Rs 1,422.17 crore in the year ended March 2020 (FY20) as against Rs 1,326.80 crore in the year ended March 2019 (FY19). Net premium earned jumped 22.60 percent to Rs 40,324.01 crore in FY20 from Rs 32,890.35 crore in FY19. Profit before Tax (PBT) increased by 2.96 percent to Rs 1,413.54 crore in FY20 over FY19.
Value of new business (VNB), used to measure profitability of the new business written in a period, increased by 17 percent to Rs 2010 crore in FY20 over FY19. VNB margin increased by 100 bps to 18.7 percent for FY20 compared with 17.7 percent for FY19.
SBI Life’s assets under management (AuM) has grown by 14 percent from Rs 1,41,020 crore as on March 31, 2019 to Rs 1,60,360 crore as on March 31, 2020 with debt-equity mix of 79:21. Approximately 93 percent of the debt investments are in AAA and sovereign instruments.
The company’s net worth increased by 15 percent from Rs 7580 crore as on 31 March 2019 to Rs 8740 crore as on March 31, 2020. The solvency ratio as on March 31, 2020 was at 1.95 as against the regulatory requirement of 1.50.
The company has assessed the overall impact of the coronavirus pandemic on its business and financials, including valuation of assets, policy liabilities, and solvency for the year ended March 31, 2020. Based on the evaluation, the company has made additional reserve amounting to Rs 600,000 thousands resulting from COVID-19 pandemic over and above the policy level liabilities calculated based on prescribed IRDAI regulations and the same have been provided for as at March 31, 2020 in the actuarial liability. The company will continue to closely monitor any future developments relating to COVID-19 which may have any impact on its business and financial position.
