Private sector insurer SBI Life’s net profit grew 18 per cent year-on-year (YoY) to Rs 263 crore in the April–June quarter (first quarter, or Q1) of 2022-23 (FY23), aided by a healthy jump in gross written premium. In the corresponding period a year ago, the insurer’s net profit was to the tune of Rs 223 crore.
On a sequential basis, however, net profit was down almost 60 per cent. Its gross written premium — the sum of new business premium and renewal premium — was up 35 per cent YoY to Rs 11,350 crore in Q1FY23.
The annualised premium equivalent (APE) was up 80 per cent YoY to Rs 2,900 crore. APE is the sum of the total value of regular — or recurring — premiums plus 10 per cent of any new single premiums written for the financial year.
The value of new business (VNB) — the present value of the future earnings from policies issued during a period — of the insurer rose 130 per cent to Rs 880 crore in Q1FY23, compared with Rs 380 crore in the corresponding period.
Its VNB margins — a measure of profitability of life insurers — stood at 30.4 per cent, against 23.7 per cent in the year-ago period.
The company has kept an additional reserve of Rs 290 crore towards the Covid-19 pandemic at the end of Q1. Shares of the insurer closed at Rs 1,190.7 — up 3 per cent from the previous day’s close.