SBI Life reports 15% YoY growth in net profit for Q4 FY23 Results

  • SBI Life’s net profit for the fourth quarter of FY23 was Rs 777 crore, up 15% YoY.
  • For the reporting quarter, net premium income increased 14% to Rs 19,897 crore.
  • Gross written premium (GWP) for the FY23 was Rs 67,320 crore, up 15% year over year.
  • For FY23, the annualised premium equivalent (APE) increased 18% to Rs 16,810 billion.

Summary Table

Company 🏦SBI Life
Quarter Ended πŸ“…March
Net Profit πŸ’°Rs 777 crore (15% higher YoY)
ET Now Poll Estimates πŸ“ˆRs 830 crore
Net Premium Income πŸ’°Rs 19,897 crore (14% higher YoY)
Gross Written Premium (GWP) πŸ’°Rs 67,320 crore (15% higher YoY)
Annualised Premium Equivalent (APE) πŸ’°Rs 16,810 crore (18% higher YoY)
Protection New Business Premium πŸ’°Rs 3,640 crore (19% higher YoY)
VoNB Margin πŸ“ˆ30.1% (420 bps higher YoY)
Solvency Ratio πŸ’ͺ2.15
Assets Under Management πŸ’°Rs 3.1 lakh crore
Individual New Business Premium πŸ’°Rs 20,910 crore (27% higher YoY)
Individual Protection Business Growth πŸ“ˆ6% (YoY)
Group Protection Business Growth πŸ“ˆ25% (YoY)
Individual Rated Premium πŸ’°Rs 15,220 crore (22.3% private market share in FY23)
Distribution Network πŸ•ΈοΈ275,374 trained insurance professionals, 992 offices
Source: SBI Life

One of the top life insurance companies in India, SBI Life, has reported a net profit of Rs. 777 crore for the quarter ended in March, an increase of 15% year over year. For the same quarter the year before, the company’s net profit was Rs 672 crore.

In comparison to the same quarter last year, the reporting quarter’s net premium income increased 14% to Rs 19,897 crore from Rs 17,434 crore. For the fiscal year 2022–2023, the gross written premium (GWP) totaled Rs 67,320 crore, an increase of 15% year over year.

For the quarter ending in March, the Annualised premium equivalent (APE) for FY23 increased 18% to Rs 16,810 crore. Protection new business premium, meanwhile, increased by 19% to Rs 3,640 crore. For the March quarter, the VoNB margin increased 420 basis points to 30.1.

At the end of March 2023, the company reported a solvency ratio of 2.15 and had Rs 3.1 lakh crore in assets under management. SBI Life claimed that with a private market share of 22.3% and an individual rated premium of Rs 15,220 crore in FY23, it continued to hold the top spot.

In FY23, individual new business premiums increased 27% to Rs 20,910 crore. Individual protection business growth in FY23 was 6% to Rs 1,000 crore, and group protection business growth was 25% to Rs 2,640 crore.

With 992 locations nationwide, SBI Life has a sizable distribution network of 275,374 trained insurance professionals, including agents, CIFs, and SPs. Due to its emphasis on enhancing the quality of business and boosting customer retention, the company reported strong growth in the 37th and 61st months of persistency (based on premium considering Regular Premium/Limited Premium payment under individual category) in FY23 by 236 bps and 612 bps, respectively.

In comparison to FY22, the 13th-month persistency (based on premium and taking into account Single Premium and Fully Paid-Up Policies as well as Group Business where Persistency is Measurable) is 88.91% in FY23.