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SBI Life Insurance reported a net profit of Rs 84 crore in the third quarter of 2010-11, as against Rs 82 crore in the year-ago period.
Lower expenses and growth in renewal premiums helped the insurer post profits, said Mr M.N. Rao, MD and CEO, SBI Life Insurance. However, IRDA's regulations regarding ULIPs seem to have affected the insurer as the company's net profit fell 18 per cent compared to the September ended quarter. It had reported a profit of Rs 103 crore in the preceding quarter. In the December ended quarter, the new business premium fell 24 per cent to Rs 1,525 crore (as against Rs 2,012 crore in the corresponding year-ago period). In the April-December period, the company's new business premium grew by only 6 per cent to Rs 4,699 crore.
“Even though growth in new business has been almost flat till now, we expect to grow by 15-20 per cent by March end,” said Mr Rao.
The company's expense to GWP (Gross Written Premium) ratio fell to 7.43 per cent from 7.99 per cent in the year-ago period. Mr Rao said the company will be able to maintain its profitability going ahead. “Given the good growth in our renewal premium, we should remain profitable.”
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