SBI Life Q1 results: Net profit sinks 43% YoY to Rs 223 cr on higher reserves for Covid claims


MUMBAI: today reported a 43 per cent year-on-year decline in its net profit to Rs 223 crore for the quarter ended March.

The sharp decline in bottomline of the company was on account of additional reserves of Rs 440 crore created by the life insurers towards Covid-19 pandemic-related claims that may come up in the coming quarters.

The life insurer said that there was a 1.28 times increase in the number of claims reported from the end of the previous financial year to the end of the June quarter, reflecting the devastating impact of the second wave of Covid-19 pandemic on the country.

The company said that the total number of claims in the reported quarter was at 8,956, while claims net of reinsurance stood at around Rs 570 crore.

Notwithstanding the impact of the second wave on the company’s bottomline, SBI Life Insurance had a stellar quarter on other fronts.

The life insurer reported 9 per cent year-on-year growth in new business premium in the quarter to Rs 3,350 crore, whereas value of new business surged 45 per cent year-on-year to Rs 343 crore.

SBI Life said it saw strong recovery after the impact of the second wave of Covid on business during the quarter. Most states had begun to ease Covid-19 restrictions from June as intensity of daily caseload and deaths started to fall after rising sharply in April and May.

On the operating front, the life insurer reported a 250 basis points year-on-year expansion in value of new business margin to 21.2 per cent.

SBI Life’s assets under management rose 32 per cent to Rs 1.75 lakh crore as on June 30 with debt investment making up 72 per cent of the pie.

Shares of SBI Life Insurance ended 4 per cent higher at 1,092.05 on the National Stock Exchange.

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