SBI Life Insurance Q1 Results: Profit Falls As Premium Income Declines

SBI Life Insurance Co.‘s quarterly profit fell amid a decline in income from premiums.

The private insurer’s profit fell 58% sequentially to Rs 223.2 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 417.3-crore profit estimate of analysts tracked by Bloomberg.

That came as net premiums fell 47% quarter-on-quarter to Rs 8,312.6 crore, with first-year gross premiums falling 62% and gross renewal and single premiums slipping 47% and 23% over the preceding quarter, respectively. Even a 64% sequential rise in income from investments to Rs 7,409.9 crore was insufficient to make up for it.

Revenue fell 25% quarter-on-quarter to Rs 15,736.91 crore.

  • Operating profit fell 62% over the preceding quarter to Rs 233.4 crore, compared with the estimated Rs 558.9 crore.

  • Ebidta margin was 1.5% against 3% in the quarter ended March. The metric was 2.4% in the same quarter last year.

  • Earnings per share stood at Rs 2.23 apiece against the estimated Rs 4.9. It was Rs 5.32 in the quarter ended March.

  • Persistency ratios by premium for the 13th, 25th, 37th, 49th and 61st months fell sequentially to 84.5%, 76.7%, 73.1%, 67% and 60.9%, respectively.

  • Solvency ratio was at 2.15 times—unchanged over thw preceding quarter.

The company received a total of 8,956 Covid-19 claims this quarter amounting to Rs 570 crore net of reinsurance. It has created further provisions of Rs 440 crore for future Covid-19 claims.

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