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.