Led by a strong growth in gross written premium (GWP), SBI Life Insurance on Monday reported a 2 per cent increase in its net profit at Rs 1,460 crore for financial year 2020-21.
The company's new business premium (NBP) rose 24 per cent to Rs 2,062 crore, while renewal premium grew 23 per cent to Rs 2,963 crore during FY21. GWP increased 24 per cent to Rs 5,025 crore.
For January-March quarter, SBI Life's net profit was at Rs 532 crore as against Rs 531 crore in the year-ago quarter. The net premium income stood at Rs 15,556 crore during the quarter under review as against Rs 11,863 in the corresponding quarter of previous fiscal.
"The company has achieved market leadership in NBP with 21.9 per cent private market share in FY 2021...the company has also achieved market leadership with IRP (individual rated premium) of Rs 1,022 crore securing 22.6 per cent private market share in FY 2021," SBI Life said in a release.
While total cost ratio decreased to 8.3 per cent in FY21 from 9.9 per cent in FY20, commission ratio decreased to 3.5 per cent from 4 per cent. Operating expense also reduced to 4.8 per cent from 5.9 per cent in FY20, while new business margin increased by 170 basis points to 20.4 per cent.
The company's assets under management stood at Rs 2,20,870 crore as on March 31, 2021, as against Rs 1,60,360 crore a year ago. The solvency ratio stood at 2.15 as of March 31, 2021.
The company's board also declared an interim dividend of Rs 2.50 per equity share. Shares of SBI Life Insurance Company Ltd on Monday closed 3.36 per cent higher at Rs 959.45 on the BSE.