SBI Life Records 107% Growth in New Business Premium for Protection Category

MUMBAI:
SBI Life Insurance Company Limited announced unaudited financial results for the quarter ended on June 30, 2018.
Business growth and market share
New Business Premium (NBP) has increased by 15.3% from ` 18.0 billion in Q1 FY 2018 to ` 20.8 billion in Q1 FY 2019.
Individual New Business Premium has shown consistent growth and is increased by 9.0% from ` 12.2 billion in Q1 FY 2018 to ` 13.3 billion in Q1 FY 2019.
Private market share based on Individual Rated Premium (IRP) has increased from 19.0% to 19.7 % and overall market share has increased from 10.3% to 10.6% in Q1 FY 2019 as compared to Q1 FY 2018. IRP has grown by 8.6% while the private industry has grown by 4.5% and total industry has grown by 5.6%.
New Business APE increased by 2.3% in Q1 FY 2019 to ` 13.1 billion from ` 12.8 billion for the same period last year.
The Company has registered growth in savings and protection business reflecting balanced product mix. Total protection NBP and individual protection business has shown a strong growth of 107.3% and 57.5% respectively in Q1 FY 2019 as compared to same period last year. Share of total protection NBP (individual and group) has increased from 5.7% to 10.2% in Q1 FY 2019.
Robust growth in GWP of 25.6% to ` 47.6 billion in Q1 FY 2019, due to strong growth in individual renewal premium by 41.3% to ` 23.8 billion.
Cost Efficiency
Total Cost ratio has decreased to 13.8% in Q1 FY 2019, from 14.2% in Q1 FY 2018
Commission ratio has decreased to 4.1% in Q1 FY 2019, from 4.4% in Q1 FY 2018
Operating Expense ratio stood at 9.7% in Q1 FY 2019 as against 9.8% in Q1 FY 2018 Profitability
Value of New Business (VoNB) stood at ` 2.2 billion for Q1 FY2019
VoNB margin increased by 80 bps from 16.2 % for FY2018 to 17.0% for Q1 FY2019
Value of New Business (VoNB) stood at ` 2.5 billion for Q1 FY2019 (with effective tax rate)
VoNB margin increased from 18.4 % for FY2018 to 19.0% for Q1 FY2019 (with effective tax rate)
PAT increased by 13.0% from ` 3.1 billion in Q1 FY 2018 to ` 3.5 billion in Q1 FY 2019 Persistency
Robust 13th month persistency of 83.67% in Q1 FY2019 as compared to 81.97% in Q1 FY 2018
Strong growth in 37th month persistency ratio from 67.19% in Q1 FY 2018 to 71.19% in Q1 FY 2019 Assets under Management
AuM has grown by 18.8% from ` 1,012.3 billion as of June 30, 2017 to ` 1,202.8 billion as of June 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 16.1% from ` 58.8 billion as at June 30, 2017 to ` 68.2 billion as at June 30, 2018.
The solvency ratio as at June 30, 2018 was at 2.14 as against the regulatory requirement of 1.50.
Return on Equity (RoE) of 21.2% in Q1 FY 2019 as compared to 21.9% in Q1 FY 2018.
Distribution network
The Company has strong distribution network of 165,540 trained insurance professional and widespread operations with 837 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 Q1 FY 2019 is bancassurance channel 61%, agency channel 23%, and other channels 16%.