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Q4FY21 Conference call highlights of SBI Life Insurance

Q4FY21 Conference call highlights of SBI Life Insurance Company

Published on 06 May 2021 .Views 177 .Comments 0
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  • FY21 Results
    • Business picked up strong growth in second half of 2021.
    • New Business Premium to the tune of Rs 20,620 crore, registering a growth of 24% YoY.  Leadership position in New Business Premium.Company’s private market share stood at 21.9%, improvement of 140bps over FY20.
    • Individual New Business Premium stands at Rs. 125 bn in FY21. Single business premium contribution stands at 20% of Individual New Business Premium.  
    • Individual Rated Business Premium stands at Rs 102.2 bn, registering a growth of 5 % on YoY basis.
    • Total Annual Premium Equivalent stands at Rs. 114.5 bn, growing 7% YoY in FY21.
    • Total 16.6 lakh individual new policies issued, registering 7% YoY growth.  
    • Achieved the milestone of Gross Written Premium crossing Rs. 500 bn, growth mainly driven by renewal premium growth.  
    • Received 5k COVID claims to the tune of Rs. 320 crore on net basis and total claims stood at Rs 3020 crore (grown by 74% YoY). Company has made additional  COVID related provisions ~ Rs. 183 crore.
    • Value of New Business Margin at 20.4% from 18.7% in FY20 mainly on the back of improved product mix even though the change in operating assumption was negative due to increased mortality risk.   
    • Healthy solvency ratios of 215%, well above the regulatory requirement of 150%.
    • An interim dividend of Rs. 2.5 per share declared during the quarter.
  • Persistency  
    • Improvement in persistency across all time cohorts.
    • Dip in persistency in case of regular premium policies.
  • Product Mix
    • Aims for balanced product mix. Currently commpany has a bouquet of 38 products.
    • Customer centricity rather than pushing the products that company wants has augured well for the company and the company will adopt same strategy going forward.
    • Higher focus on increasing the protection business mix. Protection share as % of APE improved from 9% in FY 20 to 11% in FY21.
    • Demand for ULIPs coming back (almost equal to pre-covid levels) and hence there is no plan of withdrawing ULIP.  According to management, It is an important component of people’s savings.  
    • Undertook price hike to the tune of 10% on one of the products.
    • New product launch expected in Q1FY22 and is expected to drive volumes up by 10%.
  • Distribution Channels
    • Bancassurance Channel marked a market share of 65% in Individual NBP, followed by agency (28%) and others (7%). Total Number of agents at 1,70,096 as on March’21.  Overall 947 offices across the country.
    • Others channel including brokers, online, direct, etc registered a robust growth of ~103%.
    • Added new bank partners during the year like UCO bank, Yes Bank and Suryodaya Small Finance Bank. Non- SBI banks provided a growth of 70% YoY on low base. Management is happy with the performance of SBI bank channel.
    • Huge thrust on leveraging technology through digitalisation and automation.  
  • FY 22 guidance
    • Aims to maintain cost leadership with cost ratios down to 8.3% in FY21 from 9.9% in FY20. Increased adoption of technology to augur well for cost ratios. 
    • Company has not given any specific guidance due to the current uncertain times.
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