SBI Life Insurance Company Ltd (SBI Life) on Monday reported a 43 per cent slump in its net profit to Rs 220 crore for the quarter ended in June hit by higher claim payouts due to Covid-19 pandemic.
The insurer had posted a net profit of Rs 390 crore in the year-ago quarter.
SBI Life said there was a sharp increase in claims due to the impact of the second wave of Covid-19. The number of claims reported in the first quarter of 2021-22 are 1.28 times of that filed in the whole FY21, it said.
Total number of Covid claims in Q1 FY22 stood at 8,956 and the Covid-19 claims, as net of reinsurance, stood at Rs 570 crore.
Company's gross written premium (GWP) during Q1FY22 was up by 10 per cent to Rs 8,380 crore, as against Rs 7,640 crore in Q1FY21, SBI Life said in a regulatory filing.
GWP grew by 10 per cent during the quarter mainly because of 29 per cent growth in the first year premium and 10 per cent growth in renewal premium during the quarter, it said.
The new business premium grew by 9 per cent to Rs 3,350 crore from Rs 3,060 crore. Individual new business premium jumped by 37 per cent to Rs 1,840 crore, as against Rs 1,340 crore.
While, the value of new business (VoNB) moved up by 52 per cent to Rs 390 crore in June quarter of 2021-22.
The company has achieved private market leadership in individual rated premium of Rs 1,390 crore private market share of 18.9 per cent in Q1FY22, it said.
SBI Life said its 13th month persistency ratio improved to 84.50 per cent from 81.55 per cent in the year-ago quarter due to focus on improving the quality of business and customer retention.
Assets under management (AUM) grew by 32 per cent to Rs 2.3 lakh crore (Rs 2.3 trillion) as of June 30, 2021.
The insurer said it has made additional reserves of Rs 440 crore for future Covid related claims.
Mortality experience is in line with the assumptions, it added.
Shares of the company closed 2.52 per cent up at Rs 1,077 apiece on BSE.