SBI Life Insurance reported a 40.2 per cent year-on-year (YoY) decrease in its profit in the December quarter (Q3) at ₹232.85 crore on rising in expenses and Coronavirus-linked provisions.
The insurer reported 68.27 per cent growth YoY in revenues in the December-20 quarter at ₹26,552 crore and a sharp growth. The net premium income rose to ₹13,766.49 crore in Q3 as against ₹11,694.51 crore in the year-ago period.
The company said that it has evaluated the overall impact of this pandemic on its business and finances, including valuation of assets, policy liabilities and solvency for the quarter ended December 31, 2020.
Based on the evaluation, the company has kept an additional reserve of ₹70.38 crore for COVID-19 pandemic over and above the policy level liabilities calculated based on prescribed IRDAI regulations.
SBI Life added that it will continue to closely monitor any future developments relating to COVID-19 which may have any impact on its business and financial position.
For nine-months ended December 31 (9MFY21), the value of new business (VoNB) margin (using effective tax rate) for SBI Life stood at 20.8 per cent as against 20.5 per cent a year ago.
Effective tax rate assumes that a proportion of the projected profits are tax-exempt on account of tax deductions available on income from dividends and tax-free bonds.
The annualised premium equivalent (APE) which is 100 per cent of regular premiums and 10 per cent of single premiums rose to ₹7,480 crore for 9MFY21 which was a 7 per cent YoY decline.
