Money & Banking

SBI Life Q3 profit falls 40% at ₹233 crore

Our Bureau. Mumbai | Updated on January 22, 2021

SBI

SBI Life Insurance Company reported a 40 per cent decline in third quarter net profit at ₹233 crore against ₹390 crore in the year-ago period.

Notwithstanding the 25 per cent year-on-year (y-o-y) decline in benefits paid (net), the bottom line was weighed down by a significant change in actuarial valuation (including movement in fund for future appropriation).

Net premium income (including first year premium, renewal premium and single premium) rose 18 per cent y-o-y in the reporting quarter to ₹13,766 crore.

Income from investments (net) soared 214 per cent y-o-y to ₹12,777 crore. This income is net of amortisation and losses (including capital gains).

Net commission paid increased 14 per cent y-o-y to ₹517 crore. Operating expenses related to insurance business (including employees remuneration and welfare expenses and other operating expenses) nudged up 1.14 per cent y-o-y to ₹630 crore.

Benefits paid (net) declined 25 per cent y-o-y to ₹4,644 crore. This is inclusive of interim bonus and terminal bonus.

The life insurer reported a significant jump under the head “change in actuarial liability” to ₹20,244 crore (₹7,657 crore in the year-ago quarter).

Solvency ratio

The surplus declined 51 per cent y-o-y to ₹297 crore. The solvency ratio improved a tad to 2.34 against 2.30 in the year-ago quarter. The 13th month persistency ratio improved to 86.17 per cent against 85.71 per cent.

 

Published on January 22, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like