Mumbai: The Board of Directors of SBI Life Insurance Company Limited has approved its audited financial results for the year ended on March 31, 2018, after its meeting in Mumbai.
The details of financial results submitted to exchanges are as follows.
New business growth and market share
•New Business APE increased by 26.9% in FY 2018 to ` 85.4 billion from ` 67.3 billion for the same period last year
•New Business Individual Rated Premium (IRP) has increased by 31.2% in FY 2018 to ` 77.9 billion from ` 59.4 billion for the same period last year
•Private market share based on IRP increased from 20.7% in FY 2017 to 21.8 % in FY 2018. While the overall market share based on IRP has increased from 11.1% in FY 2017 to 12.3% in FY 2018
Quality of business
•13th-month persistency stood at 83.03% for FY2018 as compared to 81.07% for FY 2017
•Renewal premium grew at 32.3% to ` 143.9 billion in FY 2018
•Operating Expense ratio has decreased to 6.8% in FY 2018, from 7.8% in FY 2017
•Value of New Business (VoNB) stood at ` 13.9 billion for FY2018
•VoNB margin of 16.2% for FY2018 as compared to 15.4% for FY2017
•PAT increased by 20.5% from ` 9.5 billion in FY 2017 to ` 11.5 billion in FY 2018
Assets under Management
•AuM has grown by 19% to ` 1,162.6 billion as of March 31, 2018, from ` 977.4 billion as of March 31, 2017
Net worth and capital position
•The Company's net worth increased by 17.6% from ` 55.5 billion as at March 31, 2017, to ` 65.3 billion as at March 31, 2018. The solvency ratio was at 2.06 as against the regulatory requirement of 1.50.
Performance for the quarter ended March 31, 2018
•Individual Rated Premium grew by 10.2% in Q4 FY 2018
•New Business Premium Protection (Individual + Group) grew by 34.5%
•Renewal Premium grew by 31.8% in Q4 FY 2018
•Total Premium (GWP) increased by 25.7% in Q4 FY 2018
•Profit after tax grew by 13.4% from ` 3.4 billion in Q4 FY 2017 to ` 3.8 billion in Q4 FY 2018.
•Operating Expense to Gross Written Premium at 5.2% in Q4 FY 2018
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 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
•Embedded Value: The measure of the consolidated value of shareholders' interest in the covered life insurance business, which is all life insurance business written by the Company since inception and in-force as on the valuation date (including lapsed business which has the potential of getting revived). The Embedded Value of the Company has been determined on the basis of the Indian Embedded Value (IEV) Methodology calculated as per APS 10 set forth by the Institute of Actuaries of India (IAI)
•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 the 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 the 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.