SBI Life Insurance registers New Business Premium

SBI Life Insurance registers New Business Premium of Rs. 20,624 crores
for the year ended on 31^st March, 2021  

SBI Life Insurance, one of the leading life insurers in the country registered a New Business Premium of Rs. 20,624 crores for the year ended on 31^st March, 2021 vis-a-vis Rs. 16,592 crores for the year ended March 31, 2020. Single premium has increased by 52% over the corresponding year.

 

Establishing a clear focus on protection, SBI Life’s protection new business premium stood at Rs. 2,459 crores for the year ended March 31, 2021 marking a year-on-year growth of 18%. Protection Individual new business premium registered a growth of 40% and stood at Rs. 742 crores for the year ended March 31, 2021. Individual New Business Premium stands at Rs. 12,499 crores with 11% growth over the corresponding year.

 

SBI Life’s profit after tax stands at Rs. 1,456 crores for the year ended March 31, 2021.

 

The company’s solvency ratio continues to remain robust at 2.15 as on March 31, 2021 as against the regulatory requirement of 1.50.

 

SBI Life’s AUM also continued to grow at 38% to Rs. 2,20,871 crores as on March 31, 2021 from Rs. 1,60,363 crores as on March 31, 2020, with the debt-equity mix of 73:27. 90% of the debt investments are in AAA and Sovereign instruments.

 

The company has a diversified distribution network of 2,25,381 trained insurance professionals and wide presence with 947 offices across the country, comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing firms, web aggregators and direct business.

 

Performance for the year ended March 31, 2021

 

·  New Business Premium at Rs. 20,624 crores, growth of 24% with private market share of 21.9%

·  Renewal Premium at Rs. 29,630 crores, growth of 23% with strong 13^th month persistency at 87.92% and 61^st month persistency at 61.63%

·  Gross written premium (GWP) crosses Rs. 500 billion mark

·  Private market leadership in Individual Rated Premium (IRP) with 22.6% market share

·  Assets under Management (AuM) grew by 38% to Rs. 2,20,871 crores

·  Operating cost efficiency further strengthen from 5.9% to 4.8%

·  New Business Margin increased by 170 bps to 20.4%

·  Value of New Business registered growth of 16% amounting to Rs. 2,334 crores

·  Indian Embedded Value (IEV) grew by 27% to Rs. 33,386 crores

·  Interim dividend of Rs.2.5 per share with a strong solvency ratio of 2.15

Exide Life Insurance in FY 2019-20 delivers

Exide Life Insurance in FY 2019-20 delivers strong growth in profits (INR 29 Crs, up 141%) with growth in premiums (INR 3220 Crs, up 12% vs FY 2018-19)

Key Highlights ·         Profits up by 141% at INR 29 Crores ·         Gross Written Premium up by 12% at INR 3,220 Crores ·         Claim Settlement Ratio improved to 98.15% ·         Assets Under Management grew by 10% to INR 15,795 Crores ·         Policyholder Bonus distribution of INR 324 Crores, growth of 13.1% ·         Solvency Ratio at 210% versus regulatory requirement of 150%

Exide Life Insurance, a 100% owned subsidiary of Exide Industries, reported a growth of 141% in Profits Before Tax (PBT) at INR 29 Crores in the Financial Year ended March 2020, compared to INR 12 Crores in the previous Financial Year (FY 18-19). This is the eighth consecutive year in which the Company has reported profits.

The Company has continued its emphasis on protection products resulting in the protection business mix increasing from 9% of Annualized Premium Equivalent (APE) in FY 18-19 to 11% in FY 19-20.

The Company has achieved its highest ever Claims Settlement Ratio at 98.15% and has a healthy Solvency Ratio of 210% versus the regulatory requirement of 150%.

Continuing with a very strong track record of declaring bonus payouts to participating policyholders every year since inception, the Company has announced Policyholder Bonus distribution of INR 324 Crores in FY 2019-20, a growth of 13.1% over previous FY.

Commenting on the results, Kshitij Jain, MD & CEO, Exide Life Insurance said, “Our primary focus remains value creation for customers and shareholders. Our long term strategy is to grow new business faster than the industry while continuing to improve on the quality of business.

Our commitment to this philosophy has paid off and our business performance has manifested in superior returns to our policyholders, with us being able to pay bonus to participating policyholders every year since inception. Needless to say we live by our promise and our core brand essence of Lamba Saath, Bharose Ki Baat.”

Performance Summary

Key Business Drivers	Unit	Financial Year Ended		YoY Growth
		Mar 19	Mar 20
Gross Written Premium Income	INR Cr	2,886	3,220	12%
New Business premium (Individual + Group)	INR Cr	803	889	11%
Renewal  Premium (Individual + Group)	INR Cr	2,084	2,331	12%
Shareholder Profit (PBT)	INR Cr	12	29	141%
Active Policies (individual)	In Lakh	15.02	15.82	5%
Assets Under Management	INR Cr	14,377	15,795	10%

Policyholder Bonus

Considering the surplus that arose over the Financial Year in the Participating fund, the Company announced policyholder bonus of INR 324 Crores in FY 2019-20, a growth of 13.1% over FY 2018-19

Solvency Ratio

The solvency ratio of the Company stood at 210% as on 31st March 2020, compared to the regulatory requirement of 150%.

Assets under Management

The Company’s Assets under Management (AUM) recorded a growth of 10% over the last financial year and stands at INR 15,795 Crores.

Profit Before Tax (PBT)

During FY 2019-20, the Company recorded Profit Before Tax of INR 29 Crores, compared to INR 12 Crores in FY 2018-19.  

Claim Settlement Ratio

The Company continued its growth journey with ‘Individual Claims Settlement Ratio’ improving to an all-time high (since inception) of 98.15% in FY 2019-20. The Company paid death claims worth INR 213.70 Crores (Individual INR 88.95 Crores and Group INR 124.75 Crores) during the Financial Year 2019-20.

Renewals and Persistency

The Company achieved 12% growth in individual renewal premiums at INR 2,221 Crores with improvement in persistency ratios for 13^th month, 25^th month as well as 37^th month.

Protection Business Mix

The mix of protection business was further strengthened to 11% of the individual new business premium (Annualized Premium Equivalent).

Life Insurance Coverage (Sum Assured)

The Company has increased its total coverage and now has total Sum Assured of INR 3.44 Lakh Crores as on 31^st March 2020.

Awards

The Company’s all round performance on value creation continued with receiving external recognition in various areas of business. Some of the noteworthy awards won are:

1.    Exide Life Smart Term Plan voted as Product of the Year 2019

2.    Helmet Saves CSR initiative won:

a.    Best BTL campaign for a socio economic program in Masters of Modern Marketing

b.    Brandvid (Gold) Best brand integration in Music Video

c.     Brandvid (Silver) – Best brand film for Social initiative

d.    FICCI best CSR initiative in Life Category