The Indian life insurance company SBI life registered a 56 per cent rise in net profit at Rs 364 crore for the third quarter ended on December 31, 2021. The insurance company’s profit was at Rs 233 crore in the same quarter of the previous year as per the regulatory filing revealed by the company on Friday.
Regardless, total income sloped down to Rs 20,458.31 crore in the quarter against Rs 26,551.90 crores in October-December, 2020. The company’s solvency ratio stood 209 per cent as of December 31, 2021, which is greater than the regulatory provision of 150 per cent. Shares of the life insurance company were up by 0.024 per cent today at Rs 1,239.00 (+0.30) apiece in the closing session on the national stock exchange.
The company displayed its net premium income that grew 30.39 per cent year-on-year (YoY) to Rs 18,025 crore from Rs 13,766 crore in the same quarter a year ago.
“In view of the seasonality of the industry, the financial results for the quarter and nine months ended December 31, 2021, are not indicative of the results that may be expected of any other interim period or full year,” it said.
“Value of New Business (VoNB) increased by 54 per cent to 22.3 billion in 9MFY22. VoNB margin increased by 260 bps from 19.3 per cent to 21.9 per cent. Additional reserve of 2.7 billion towards COVID-19 pandemic has been kept as of December 31, 2021,” said the company.
SBI Life has an authorized capital of ₹20 billion (US$270 million) and a paid-up capital of ₹10 billion (US$130 million). The AuM is Rs. 2,441.8 billion. SBI has a 55.50% stake in the company and BNP Paribas Cardiff owns a 0.22% stake. Other investors are Value Line Pte. Ltd. and MacRitchie Investments Pte. Ltd., holding a 1.95% stake each while the remaining 12% is a free-float stake with public investors.