Performance
for the quarter ended June 30, 2019
· Increase in New Business Premium
(NBP) by 52%
· Increase in share of protection
from 10% to 14% with 106% y-o-y growth
· Private market leadership in
Individual Rated Premium (IRP) with 35% y-o-y growth
· Decrease in Operating expense ratio
from 9.7%to 7.4%
· Increase in 13th month Persistency
ratio by 200 bps from 82.47% to 84.46%
· Increase in Profit by 5% to Rs. 3.7 billion
· Value of New Business(VoNB)increased
by 49% to`
3.7 billion
· 
VoNB
margin increased from 19.0% to19.9%
VoNB
margin increased from 19.0% to19.9%
Key measures of
performance
(Rs. in billion)
|
Particulars
|
Q1 FY 2020
|
Q1
FY 2019
|
YoY
|
|
Revenue Parameters
|
|
|
|
|
New Business Premium (NBP)
|
31.5
|
20.8
|
52%
|
|
Renewal Premium (RP)
|
35.4
|
26.8
|
32%
|
|
Gross Written Premium
(GWP)
|
66.9
|
47.6
|
41%
|
|
Individual New Business Premium
|
18.7
|
13.3
|
41%
|
|
Individual Rated Premium (IRP)
|
16.2
|
12.1
|
35%
|
|
New Business Annualized Premium Equivalent (APE)
|
18.6
|
13.1
|
41%
|
|
Total Protection NBP (Individual + Group)
|
4.4
|
2.1
|
106%
|
|
Total Protection NBP Share
|
13.8%
|
10.2%
|
-
|
|
Private Market Share
based on IRP1
|
21.5%
|
19.7%
|
-
|
|
NBP Product mix (%) (Par/Non Par/ULIP)
|
9/49/42
|
16/38/46
|
-
|
|
NBP Channel mix (%)(Banca/Agency/others)
|
57/18/25
|
61/23/16
|
-
|
|
Financial Parameters
|
|
|
|
|
Value of New Business (VoNB)
2
|
3.3
|
2.2
|
49%
|
|
New
Business Margin (VoNB Margin) 2
|
17.9%
|
17.0%
|
-
|
|
VoNB Margin using
effective tax rate6
|
|
|
|
|
Value of New Business (VoNB)
2
|
3.7
|
2.5
|
49%
|
|
New
Business Margin (VoNB Margin) 2
|
19.9%
|
19.0%
|
-
|
|
Profit after Tax (PAT)
|
3.7
|
3.5
|
5%
|
|
Net Worth
|
79.4
|
68.2
|
16%
|
|
Assets under Management (AuM)
|
1,469.5
|
1,202.8
|
22%
|
|
Key Financial Ratios
|
|
|
|
|
Operating expense ratio3
|
7.4%
|
9.7%
|
-
|
|
Commission
ratio
|
3.7%
|
4.1%
|
-
|
|
Total
cost ratio4
|
11.2%
|
13.8%
|
-
|
|
Persistency Ratios (based on premium) 5
|
|
|
|
|
13th
month persistency
|
84.46%
|
82.47%
|
-
|
|
25th
month persistency
|
75.97%
|
74.27%
|
-
|
|
37th
month persistency
|
70.57%
|
71.30%
|
-
|
|
49th
month persistency
|
67.89%
|
61.35%
|
-
|
|
61st
month persistency
|
56.27%
|
57.82%
|
-
|
|
Solvency Ratio
|
2.17
|
2.14
|
-
|
|
Return on Equity (RoE)
|
19.2%
|
21.2%
|
-
|
1. Source: Life insurance council
2. VNB and VNB margin for Q1 FY20 and Q1 FY19 are based on management estimates
3. Operating expense ratio = Operating expenses / Gross
Written Premium (GWP)
4. Total cost ratio = (Operating expenses + Commission
+ Provision for doubtful debt and bad debt written off) /GWP
5. The persistency ratios are calculated as per
IRDA/ACT/CIR/MISC/035/01/2014 circular dated 23rd January 2014. Single Premium
and Fully Paid-Up policies are considered in above calculation. Group Business
where persistency is measurable is included. Persistency Ratios for the period
ended June 30, 2019 and June 30, 2018 are 'For the Quarter' Persistency Ratios
are calculated using policies issued in March to May period of the relevant
years.
6. Effective tax rate assumes that a proportion of the
projected profits are tax exempt on account of tax deductions available on
income from dividends and tax free bonds.
N.B:
Refer the section on definitions, abbreviations and explanatory notes
The Board of Directors
of SBI Life Insurance Company Limited approved and adopted its unaudited
financial results for the quarter ended June30, 2019, following its meeting on Tuesday,
July 23, 2019 in Mumbai. The disclosure of financial results submitted to
exchanges is annexed to this release.
Business growth and
market share
· New
Business Premium (NBP) has increased by 52% from ` 20.8 billion in Q1 FY 2019 to ` 31.5 billion in Q1 FY
2020.
· Individual
rated premium (IRP) has increased by 35% from ` 12.1 billion in Q1 FY 2019 to ` 16.2 billion in Q1 FY
2020.
· Individual
New Business Premium has shown strong growth and is increased by 41% from `13.3
billion in Q1 FY 2019 to `18.7 billion in Q1 FY 2020.
· The Company has registered growth in savings and
protection business reflecting balanced product mix. Total
protection new business premium has increased by 106% from `
2.1 billion in Q1 FY 2019 to `4.4 billion in Q1 FY 2020. The share of total protection
NBP (individual and group) has increased from 10.2% in Q1 FY 2019 to 13.8% in
Q1 FY 2020.
· New
Business APE increased by 41% from ` 13.1 billion in Q1 FY 2019 to ` 18.6 billion in Q1 FY
2020.
· Increase
in GWP by 41% to `
66.9 billion in Q1 FY 2020 mainly
due to strong growth in NBP by 52% from ` 20.8 billion in Q1 FY 2019 to ` 31.5 billion Q1 FY
2020.
Cost Efficiency
· Total
Cost ratio has decreased to 11.2% in Q1 FY
2020, from 13.8% in Q1 FY 2019.
§ Commission
ratio has decreased to 3.7% in Q1 FY 2020,
from 4.1% in Q1 FY 2019.
§ Operating
Expense has decreased to7.4% in Q1 FY
2020,from9.7% in FY 2018.
Profitability
· Value
of New Business (VoNB) increased by 49% to ` 3.3
billion in Q1 FY 2020.
· VoNB
margin increased by 90 bps from 17.0% in Q1 FY2019 to 17.9% in Q1 FY 2020.
· Value
of New Business (VoNB) increased by 49% to ` 3.7
billion for FY2020 (with effective tax rate).
· VoNB
margin increased from 19.0% for Q1 FY 2019 to 19.9% for FY2020 (with effective
tax rate).
· PAT
increased by 5% from `3.5billion
in Q1 FY 2019 to `3.7billion in Q1 FY 2020.
Persistency
· Robust
13th month persistency of 84.46% in Q1 FY2020 as compared to 82.47% in Q1 FY 2019.
· Strong
growth in 49th month persistency ratio of 67.89% in Q1 FY 2020 as
compared to 61.35% in Q1 FY 2019.
Assets under Management
AuM has grown by 22% from ` 1,202.8 billion as of
June 30, 2018 to `
1,469.5 billion as of June 30, 2019 with debt-equity mix of 77:23. 90% of the
debt investments are in AAA and Sovereign instruments.
Net
worth and capital position
· The
Company’s net worth increased by 16% from`68.2 billion
as at June 30, 2018 to `79.4 billion as at June 30, 2019.
· The
solvency ratio as at June 30, 2019 was at 2.17 as against the regulatory
requirement of 1.50.
· Return on Equity (RoE) of 19.2% in Q1 FY 2020 as compared to 21.2%
in Q1 FY 2019.
Distribution
network
· The Company has strong distribution network of 174,753 trained
insurance professional and widespread operations with 922 offices across
country.
· The
Company has diversified distribution network comprising of strong bancassurance
channel, agency channel and others comprising of corporate agents, brokers,
micro agents, common service centers, insurance marketing firms, web
aggregators and direct business. NBP channel mix for Q1
FY 2020 is bancassurance channel 57%, agency channel 18%, and other channels 25%.
Definitions,
abbreviations and explanatory notes
· New Business Premium (NBP): Insurance premium that is due in the first
policy year of a life insurance contract or a single lump sum payment from the
policyholder
· New Business Annualized Premium Equivalent (APE): The sum of
annualized first year premiums on regular premium policies, and 10% of single
premiums, written by the Company during the fiscal year from both retail and
group customers
· Individual New Business Premium:Insurance
premium that is due in the first policy year of an individual life insurance
contract
· Individual Rated Premium (IRP): New business premiums written by the Company under individual
products and weighted at the rate of 10% for single premiums
· Renewal Premium: Life insurance premiums falling due in the years subsequent to the first
year of the policy
· Value of New Business (VoNB): VoNB is the present value of expected future earnings from
new policies written during a specified period and it reflects the additional
value to shareholders expected to be generated through the activity of writing
new policies during a specified period.
· Value of New Business Margin / VoNB Margin: VoNB Margin is the ratio of VoNB to
New Business Annualized Premium Equivalent for a specified period and is a
measure of the expected profitability of new business
· Solvency Ratio:
Solvency ratio means ratio of the amount of Available Solvency Margin to the
amount of Required Solvency Margin as specified in form-KT-3 of IRDAI Actuarial
Report and Abstracts for Life Insurance Business Regulations
· Net worth: Net
worth represents the shareholders’ funds and is computed as sum of share
capital and reserves including share premium, share application money and fair
value change account net of debit balance in profit and loss account
About
SBI Life Insurance
SBI Life Insurance
Company Limited (“SBI Life”/ “the Company”), established in 2001, is a joint
venture between State Bank of India and BNP Paribas Cardif S.A. and is one of
the leading life Insurance companies in India. SBI Life has an authorized
capital of `
20.0 billion and a paid up capital of ` 10.0 billion.
SBI Life offers a
comprehensive range of life insurance and pension products at competitive
prices, ensuring high standards of customer service and world class operating
efficiency. The Company offers individual and group products which include
savings and protection plans to address the insurance needs of diverse customer
segments.
SBI Life has a
multi-channel distribution network comprising of an expansive Bancassurance
channel with SBI, which has an unrivalled strength of over 22,000 branches
across the country. SBI Life also has a large and productive agent network
comprising of 121,137 agents, as on June 30, 2019. The Company’s other
distribution channels include direct sales and sales through corporate agents,
brokers, insurance marketing firms and other intermediaries. As on June 30, 2019,
the Company has a widespread network of 922 offices across the Country to
address customer needs effectively and efficiently. The Company had an AuM of ` 1,469.5 billion as of June30, 2019.
The
Company is listed on National Stock Exchange (“NSE”) and The Bombay Stock
Exchange (“BSE”).
BSE Code: 540719
NSE Code: SBILIFE
Disclaimer
Except for the
historical information contained herein, statements in this release which
contain words or phrases such as 'will', ‘expected to’, etc., and similar
expressions or variations of such expressions may constitute 'forward-looking
statements'. These forward-looking statements involve a number of risks,
uncertainties and other factors that could cause actual results, opportunities
and growth potential to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not
limited to, the actual growth in demand for insurance and other financial
products and services in the countries that we operate or where a material
number of our customers reside, our ability to successfully implement our
strategy, including our use of the Internet and other technology our
exploration of merger and acquisition opportunities, our ability to integrate
mergers or acquisitions into our operations and manage the risks associated
with such acquisitions to achieve our strategic and financial objectives, our
growth and expansion in domestic and overseas markets, technological changes,
our ability to market new products, the outcome of any legal, tax or regulatory
proceedings in India and in other jurisdictions we are or become a party to,
the future impact of new accounting standards, our ability to implement our
dividend policy, the impact of changes in insurance regulations and other regulatory
changes in India and other jurisdictions on us. SBI Life Insurance Company
Limited undertakes no obligation to update forward looking statements to
reflect events or circumstances after the date thereof.
This release does not constitute an offer of
securities.
For
investor queries please call Sangramjit Sarangi at + 91 22 6191 0281or email investorrelations@sbilife.co.in
For
further press queries please call Santosh Settyat +91-22-6191 0034 / Minakshi
Mishra at +91-22-6191 0140 or email santosh.setty@sbilife.co.in/ minakshi.mishra@sbilife.co.in
(Rs.1
billion = Rs, 100
crore)
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