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SBI Life share hits 52-week high on 24% growth in new business premium

SBI Life share hits 52-week high on 24% growth in new business premium

The company's new business premium (NBP) rose 24 per cent to Rs 20,620 crore, while renewal premium grew 23 per cent to Rs Rs 29,630 crore during FY21.

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Share of SBI Life Insurance Company rose over 4 per cent in early trade a day after the company reported a 2 per cent increase in its net profit at Rs 1,460 crore for financial year 2020-21.

The stock touched a 52-week high of Rs 1,005.05. However, it shed all early gains amid profit booking. At 10:10 hours, it was quoting at Rs 965.65, up 0.65 per cent on BSE.    

The company's new business premium (NBP) rose 24 per cent to Rs 20,620 crore, while renewal premium grew 23 per cent to Rs Rs 29,630 crore during FY21.

For the January-March quarter, SBI Life's net profit was at Rs 532 crore as against Rs 531 crore in the year-ago quarter. Net premium income stood at Rs 15,556 crore during the quarter under review as against Rs 11,863 crore in the corresponding quarter of the previous fiscal.

"The company has significant headroom for growth and margin expansion. Current valuations are undemanding for distribution and cost base," CLSA said.

"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 10,220 crore securing 22.6 per cent private market share in FY 2021," SBI Life said in a release.

The company's board also declared an interim dividend of Rs 2.50 per equity share. Share of SBI Life Insurance Company on Monday closed 3.36 per cent higher at Rs 959.45 on BSE.