SBI Life Insurance Q4 FY22 Results

SBI Life Insurance Company posted its Q4 FY22 results on April 28, 2022. The company posted a whopping 84.6% quarter on quarter (QoQ) jump in its consolidated profit after tax (PAT) which came in at Rs 672 crores in the quarter under review against Rs 364 crore in the previous quarter. On a year on year (YoY) basis, the PAT increased 26.3% to Rs 672 crore from Rs 532 crore in the year-ago period.

Although the company’s net premium Income dropped by 3.28% on a sequential basis to Rs 17,433 crore from Rs 18,025 crore in the previous quarter, the same jumped by 12% on a YoY basis from Rs 15,555 crore in the year-ago period. The QoQ and YoY growth in the first-year premiums was largely flat. It decreased by 5.4% on a YoY basis, it had a nominal increase of 5% to Rs 3,853 crore. The renewal premiums saw a jump of 12.3% QoQ and 15% YoY to Rs 10,842 crore in the quarter under review.

The net income from investments increased 23.7% QoQ to Rs 2,999 crore from Rs 2,424 crore, the same reduced by 66.5% YoY from Rs 4,505 crore in the year-ago period. The New Business Premium (NBP) for FY22 increased by 23% YoY to Rs 25,400 crore from Rs 20,600 crore in FY21. The Gross Written Premium (GWP) increased 17% YoY to Rs 58,700 crore in FY22 from Rs 50,200 crore in FY21.

The company recommended a dividend payout of Rs 2 per share. SBI Life’s stock closed in the green at Rs 1,113.95 per share, up 3.70% at the end of the intraday trading session on April 28, 2022.

Hits

• PAT up 84.6% QoQ, 26.3% YoY to Rs 672 crore in the quarter under review
• Strong growth in Individual New Business Premium by 32% to Rs 16,500 crore in FY22
• New Business Premium (NBP) has grew by 23% to Rs 25,400 crore in FY22 driven by strong growth in regular premium business by 25%
• Assets under management up by 21% YoY to Rs 2.67 lakh crore in FY21 from Rs 2.20 lakh crore in FY22
• Company’s net worth up 12% to Rs 11,600 crore in FY22 from Rs 10,400 crore in FY21
• Operating expense ratio up at 5.1% in FY22 from 4.8% in FY21
• Solvency ratio down to 2.05% in FY21 from 2.15% in FY21

Misses

• Return on Equity (RoE) down by 13.7% in FY22 from Rs 15.2% in FY21
• Net Premium Income dropped by 3.28% on a sequential basis to Rs 17,433 crore from Rs 18,025 crore in the previous quarter
• First-year premium decreased by 5.4% YoY to Rs 3,853 crore

Other things to know about SBI Life

• The company has a P/E ratio of 73.81 against the industry average of 23.90
• SBI Life’s P/B ratio is at 10.33 against the industry average of 23.90
• The company’s dividend yield is at 0.23% against the industry average of 0.58%

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Research Analyst: Bavadharini KS