Q4FY21 Conference call highlights of SBI Life Insurance Company
Published on 06 May 2021
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.
Improvement in persistency across all time cohorts.
Dip in persistency in case of regular premium policies.
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%.
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.
You like to know more. We like that!
Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.