The shares of SBI Life Insurance Company Ltd jump 1.6 percent to Rs 1,136 on quarterly numbers. The private sector insurer on Wednesday reported a 15 percent year-on-year (YoY) jump in net profit at Rs 780 crore for the fourth quarter that ended March 31, 2023. In the corresponding quarter last year, the company posted a net profit of Rs 680 crore.

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Brokerage firm Morgan Stanley maintains a overweight stance on the shares of SBI Life with a target price of Rs 1,650 per share. Value of new business (VNB) better-than-expectations owing to a sharp decline in proportion of Unit Linked Insurance Plan (ULIP) in Annualised Premium Equivalent (APE).

The value of the new business (VoNB) recorded a growth of 23 percent at Rs 1,440 crore for the March quarter. It was Rs 1,174 crore a year ago. The company said its VNB margin expanded to 31.6 percent, up from 28.4 percent a year ago, it said in an exchange filing.

VoNB is the present value of expected future earnings from new policies written during a specified period. It reflects the additional value expected to be generated through the writing of new policies during a specified period.

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The company maintained its leadership position in individual rated premium of Rs 15,220 crore with 22.3 percent private market share in FY23. It witnessed strong growth in individual new business premiums by 27 percent to Rs 20,910 crore in FY23.

The New Business Premium (NBP) grew by 16 percent to Rs 29,590 crore in FY23 aided by growth in regular premium business by 17 percent, the company said. The new business premium is the insurance premium due in the first policy year.

The Protection New Business Premium has increased by 19 percent from Rs 3,050 crore in FY22 to Rs 3,640 crore in FY23 due to growth in individual protection business by 6 percent to Rs 1,000 crore and growth in group protection business by 25 percent to Rs 2,640 crore in FY23.

The Gross Written Premium grew by 15 percent to Rs 67,320 crore in FY23 mainly due to 17 percent growth in Regular Premium (FYP) and 13 percent growth in Renewal Premium in FY23, it said.

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The company's 13th-month persistency (based on premium considering single premium and fully paid-up policies and group business where persistency is measurable) is 88.91 percent in FY23 against 88.35 percent in FY22. Persistency ratio reflects the number of policyholders who paid their renewal premium.

Assets under management (AUM) grew by 15 percent from Rs 2,67,410 crore as on March 31, 2022, to Rs 3,07,340 crore as on March 31, 2023, with a debt-equity mix of 71:29.

SBI Life is a joint venture between the country's largest lender State Bank of India (SBI) and BNP Paribas Cardif SA, a global insurance company in Europe.

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(Edited by : Pradeep John)

First Published:Apr 26, 2023 9:42 PM IST