The New Business Premium was Rs 3,059 crore for the period ended on 30 June 2020 compared to Rs 3,150 crore in previous year a fall of 3%.
SBI Life Insurance reported a 5% year-on-year increase in its net profit at Rs 390 crore for the June quarter. The gross written premium (GWP) for Q1 FY21 stood at Rs 7,640 crore, against Rs 6,690 crore in previous financial year, clocking a surge of 14%. However, the growth if GWP was led by positive renewal premium as new business premiums came down by 3% in first quarter of current fiscal.
With a market leadership of 23.9% private market share in the first quarter of FY21, SBI Life Insurance continues its focus on the protection category. The New Business Premium was Rs 3,059 crore for the period ended on 30 June 2020 compared to Rs 3,150 crore in previous year a fall of 3%.
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The value of New Business (VoNB) decreased by 29% to Rs 240 crore in Q1 of FY21. While the VoNB margin increased by 80 basis points from 17.9% in Q1 FY2020 to 18.7% in Q1FY 2021. 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. VoNB Margin is the ratio of VoNB to New Business Annualised Premium Equivalent for a specified period and is a measure of the expected profitability of new business.
SBI Life’s AUM also grew by 19% to Rs 1.75 lakh crore as on June 30, 2020 from Rs 1.46 lakh crore as on June 30, 2019, with the debt-equity mix of 76:24. According to the company, 90% of the debt investments are in AAA and Sovereign instruments.
The company has a diversified distribution network of 1,90,696 trained insurance professionals and wide presence with 940 offices across the country, comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centres, insurance marketing firms, web aggregators and direct business.