SBI Life Insurance, a subsidiary of State Bank of India, on Monday reported over two-fold rise in net profit at Rs 300 crore for the second quarter ended September 30, 2020. The company's net profit was Rs 130 crore in the July-September quarter of the previous fiscal, SBI Life Insurance said in a filing to the Bombay Stock Exchange.
The total income of the private sector life insurer jumped by 45 per cent to Rs 18,458 crore in Q2 FY21, against Rs 12,745 crore in the year-ago period.
Net premium income, the amount of premium received less the expenses associated with the policy, grew by 22 per cent to Rs 12,858 crore as against Rs 10,111.51 crore in the same period last year.
Assets under management (AUM) increased to Rs 1,86,360 crore during the quarter under review from Rs 1,54,760 crore at the end of September 30, 2019.
For the half year ended September 30, 2020, the net profit of the company stood at Rs 680 crore compared to Rs 500 crore in the same period last year, registering a year-on-year growth of 38 per cent. New Business Premium (NBP) increased by 15 per cent to Rs 9,000 crore in H1 FY21 from Rs 7,820 crore in H1 FY20. AUM grew by 20 per cent to Rs 1,86,360 crore as on September 30, 2020, from Rs 1,54,760 crore as on September 30, 2019, with debt-equity mix of 76:24. The company said that 90 per cent of the debt investments are in AAA and sovereign instruments.
The company's net worth increased by 20 per cent to Rs 9,660 crore from Rs 8,070 crore in the year ago period.
SBI Life Insurance said it has assessed the overall impact of the COVID-19 pandemic on its business and financials, including valuation of assets, policy liabilities and solvency for the period ended September 30, 2020. "Based on the evaluation, the company has kept additional reserve amounting to Rs 64.76 crore resulting from COVID-19 pandemic over and above the policy level liabilities. The company will continue to closely monitor any future developments relating to COVID-19 which may have any impact on its business and financial position," it said.
SBI Life Insurance is a joint venture between the country's largest lender State Bank of India (SBI) and BNP Paribas Cardif SA.
Following the Q2 results, shares of SBI Life Insurance Company closed Monday's trade at Rs 778.75 apiece, up 1.10 per cent, on the BSE.