SBI Life Insurance : Covid-related claims fall on lower deaths and record vaccination
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SBI Life Insurance registered a 56.3 per cent jump in third quarter net profit to ₹364.06 crore compared to ₹232.85 crore a year ago.
For the quarter ended December 31, 2021, its net premium income shot up by 30.9 per cent to ₹18,025.34 crore against ₹13,766.49 crore in the same period last fiscal.
“Value of New Business increased by 54 per cent to ₹2,230 crore in the nine months of the fiscal 2021-22,” it said in a statement on Friday.
Net benefits paid in the third quarter of the fiscal was 39.4 per cent higher on a year-on-year basis to ₹6,472.63 crore. However, on a sequential basis, it was much lower than the net benefits paid at ₹12,702.07 crore in the second quarter of the fiscal.
The life insurer also reported a decrease in Covid-related claims on lower deaths and record vaccination.
Covid claims
The total number of Covid claims between April and December 2021 was 26,708. Covid claims’ net of reinsurance of was ₹1,530 crore for the nine months of the current fiscal. In its investor presentation, the SBI Life Insurance said its current reserves sufficient for future expected death claims.
Its 13 th month persistency ratio was 79.2 per cent for the third quarter of the fiscal against 80.29 per cent a year ago. The 61 st month persistency was 45.28 per cent as on December 31, 2021, versus 45.18 per cent a year ago.
Solvency ratio as on December 31, 2021 quarter was 2.09 against the regulatory requirement of 1.50.
Its assets under management grew by 23 per cent to ₹2,56,870 crore as on December 31, 2021, compared to ₹2,09,500 crore as on December 31, 2020, with debt-equity mix of 71:29. Over 96 per cent of the debt investments are in AAA and sovereign instruments, it further said.
