MUMBAI:
The Board of Directors of SBI Life Insurance Company Limited approved and adopted its audited financial results for the half year ended September 30, 2018, following its meeting on Friday, October 19, 2018 in Mumbai. The disclosure of financial results submitted to exchanges is annexed to this release.
Business growth and market share New Business Premium (NBP) has increased by 29.9% from `42.9 billion in H1 FY 2018 to `55.7 billion in H1 FY 2019.
Individual rated premium (IRP) has increased by 11.4% from ` 30.6 billion in H1 FY 2018 to ` 34.1 billion in H1 FY 2019.
Individual New Business Premium has shown consistent growth and is increased by 11.6% from `33.3 billion in H1 FY 2018 to `37.2 billion in H1 FY 2019.
Individual unit linked New Business Premium has increased by 15.0% from `23.8 billion in H1 FY 2018 to ` 27.4 billion in H1 FY 2019.
The Company has registered growth in savings and protection business reflecting balanced product mix. Total protection new business premium has increased by 141.7% from` 2.4 billion in H1 FY 2018 to `5.9 billion in H1 FY 2019. The share of total protection NBP (individual and group) has increased from 5.6% in H1 FY 2018 to 10.5% in H1 FY 2019.
New Business APE increased by 9.6%in H1 FY 2019to `37.0 billion from ` 33.8 billion for the same period last year.
Robust growth in GWP of 34.6% to ` 124.4 billion in H1 FY 2019, due to strong growth in individual renewal premium by 42.0% to ` 63.62 billion and also due to increase in group single premium by 130.8% from ` 7.8 billion to `18.0 billion.
Cost Efficiency
Total Cost ratio has decreased to 12.0% in H1 FY 2019, from 13.3% in H1 FY 2018
Commission ratio has decreased to 4.1% in H1 FY 2019, from 4.7% in H1 FY 2018
Operating Expense ratio stood at 7.8% in H1 FY 2019 as against 8.6% in H1 FY 2018 Profitability
? Value of New Business (VoNB) increased by 21.8% to`6.4 billion inH1 FY2019
VoNB margin increased by 170 bps from 15.6 % inH1 FY2018 to 17.3%inH1 FY2019
Value of New Business (VoNB) stood at ` 7.1 billion for H1 FY2019 (with effective tax rate)
VoNB margin increased from 18.4 % for FY2018 to 19.2% for H1 FY2019 (with effective tax rate)
PAT increased by 12.2% from `5.4 billion in H1 FY 2018 to `6.0billion in H1 FY 2019 Persistency
Robust 13 th month persistency of83.2%inH1 FY2019 as compared to 81.3%inH1 FY 2018
Strong growth in 37 th month persistency ratio from 67.8% in H1 FY 2018 to 71.0% in H1 FY 2019
Assets under Management
AuMhas grown by 20.1%from `1,050.7 billion as of September 30, 2017 to `1,261.7 billion as of September 30, 2018 with debt-equity mix of 77:23. 90% of the debt investments are in AAA and Sovereign instruments.
Net worth and capital position
The Company’s net worth increased by 14.7% from `61.8 billion as at September 30, 2017 to `70.9 billion as at September30, 2018.
The solvency ratio as at September 30, 2018 was at 2.21 as against the regulatory requirement of 1.50.
Return on Equity (RoE) of 17.8% in H1 FY 2019 as compared to 18.4% in H1 FY 2018.
Distribution network
The Company has strong distribution network of 169,662 trained insurance professional and widespread operations with 848 offices across country.
The Company has diversified distribution network 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. NBP channel mix for H1 FY 2019 is bancassurance channel 61%, agency channel 21%, and other channels 18%.
