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SBI Life Insurance registered a 42.9 per cent drop in its net profit in the first quarter of the fiscal year, as the insurer makes additional reserves for future Covid-19 claims.
The private sector life insurer reported net profit of ₹223.16 crore for the quarter ended June 30, 2021 as against ₹390.89 crore in the same period last fiscal.
It made additional reserves amounting to ₹444.72 crore towards Covid-19 pandemic for future claims.
SBI Life Insurance said it saw a 1.28 times increase in the number of claims reported in the first quarter of 2021-22 compared to the first quarter last fiscal.
The total number of Covid-19 claims for this quarter was 8,956 for the insurer. In value terms, the claims net of reinsurance amounted to ₹570 crore.
“Mortality experience is in line with the assumptions,” SBI Life Insurance said in its investor presentation.
Its net premium income increased by 9.5 per cent on a year on year basis to ₹8,312.55 crore in the first quarter of the fiscal from ₹7,588.09 crore a year ago. Total income however fell 2.7 per cent to ₹15,736.91 crore on an annual basis due to lower income from investments. Value of new business increased by 45 per cent to ₹340 crore in the first quarter of the fiscal.
Its 13-month persistency ratio improved by 295 basis points to 84.5 per cent as on June 30.
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