Private life insurer SBI Life Insurance posted a 42.9 percent year-on-year (YoY) drop in its June quarter (Q1) net profit at Rs 223.16 crore due to additional reserving for COVID-19.
The insurer said that considering COVID-19 claims, it has he made an additional reserve amounting to Rs 444.72 crore as of June 30.
“The company will continue to closely monitor any future developments relating to COVID-19 which may have any impact on its business and financial position,” it added.
The insurer said that there was a 1.28x increase in number of claims reported from FY21 to Q1FY22. For SBI Life, the total number of COVID-19 death claims in Q1FY22 stood at 8,956. The claims amount net of reinsurance stood at Rs 570 crore.
SBI Life Insurance said in its investor presentation that the mortality experience is in line with the assumptions.
VNB 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.
The 13th month persistency stood at 84.5 percent in Q1 as against 81.55 percent in the year-ago period.
Asset under management (AUM) has grown by 32 percent from Rs 2.31 lakh crore as on June 30, 2021. The debt-equity mix stood at 72:28 where over 90 percent of the debt investments are in AAA and sovereign instruments.
As per the company statement, the New Business Premium (NBP) grew by 9 percent YoY to Rs 3,340 crore in Q1FY22.
Here, the protection NBP rose by 46 percent YoY to Rs 430 crore. This, the company said, was due to a growth in in individual protection business and group protection business.