SBI Life Insurance, a subsidiary of State Bank of India, on Wednesday reported a 47.5 per cent increase in net profit to Rs 389.77 crore during the third quarter ended December 31, 2019.
"The company's net profit was Rs 264.28 crore in the October-December 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 rose to Rs 15,779.05 crore in Q3FY20, against Rs 12,156.39 crore in the year-ago period.
Assets under management (AUM) increased to Rs 1,64,190 crore as compared to Rs 1,34,150 crore at the end of December 31, 2018.
For the nine-month ended December 31, 2019, the net profit of the company stood at Rs 891.52 crore against total revenue of Rs 38,167.93 crore. The value of new business (VoNB) stood at Rs 1,650 crore for nine months period, up by 27 per cent over the previous financial year. VoNB margin increased by 80 basis points (bps) from 17.5 per cent in 9MFY19 to 18.3 per cent in 9MFY20.
VoNB is used to measure profitability of the new business written in a period. It is present value of all future profits to shareholders measured at the time of writing of the new business contract.
New Business Premium (NBP) increased by 35 per cent from Rs 9,470 crore in 9M FY19 to Rs 12,790 crore in 9MFY20. "The company has increased its private market share based on New Business Premium (NBP) from 20 per cent in 9MFY19 to 22.3 per cent in 9MFY20.
During the December quarter, the company classified its investment in crisis-hit Dewan Housing Finance Ltd (DHFL) bonds as NPA on account of default in interest and principal repayment of non-convertible debenture (NCDs) held in Unit Linked Funds, it said in the exchange filing.
The provision of Rs 157 crore, including Mark to Market (MTM) change in fair value of Rs 116 crore, under unit linked fund and Rs 113 crore under shareholders funds in nine month of 2019-20 has been recognised, it added.
SBI Life is joint venture between the country's largest lender State Bank of India (SBI) and BNP Paribas Cardif SA, a global insurance companies of the Europe.
Following Q3 earnings, shares of SBI Life Insurance Company closed Wednesday's trade at Rs 982.35 apiece, up 0.96 per cent, on the BSE.
By Chitranjan Kumar