Winning Bizness Desk
Mumbai. In less than 25 years, SBI Life has made a good presence among the people and it reflects in its financial results. This insurance company has registered a net profit of Rs 519.52 crore in the first quarter (April-June) of the financial year 2024-25 and has increased by 36.34% on an annual basis. In the same quarter a year ago (Q1FY24), the company had earned a profit of Rs 381.04 crore. During this period, the company's net premium income has increased by 15% to Rs 15,105 crore as compared to April-June 2023, whereas a year ago the company's premium income was Rs 13,104 crore. At the same time, income from investment increased by 32.27% to Rs 19,283.50 crore. SBI Life's net profit has decreased by 35.92% as compared to the first quarter of FY 2023-24 i.e. January-March 2024. In the previous quarter, the company had registered a net profit of Rs 810.80 crore. Similarly, income from premium has also come down by about 40%. It was Rs 25,116.47 crore in Q4FY24.
SBI Life Insurance started as a joint venture
Notably, SBI Life Insurance Company Limited was started as a joint venture between State Bank of India (SBI) and French financial institution BNP Paribas Cardif. It was started in October 2000. Currently, SBI holds 55.50% and BNP holds 0.22% stake in the company. SBI Life has 1,040 offices, 23,893 employees, 246,078 agents and 77 corporate partners across the country. The company has a network of 14 bancassurance partners, more than 40,000 partners and 143 brokers. The company's market capitalization is Rs 1.64 lakh crore.
AUM increased 26% year-on-year:
According to data received from the company, assets under management (AUM) grew 26% to Rs 4.14 lakh crore at the end of the June quarter, while the value of new business (VoNB) grew 12% to Rs 970 crore. Solvency ratio declined to 2.01% from 2.15% last year and unit linked insurance plans (Ulips) accounted for 61% of the total product mix, up from 53% in the same period last year. Data shows that during April-June 2024, new business grew 13% year-on-year to Rs 7,030 crore and renewal premium grew 16% year-on-year to Rs 8,540 crore. SBI Life stock rose 2.37% to close at Rs 1,632 on July 24. The company's stock has given a return of 0.65% in the last 5 days, 12.38% in one month, 15.75% in 6 months and 23.95% in one year. Talking about this year only (from January 1 till now), SBI Life stock has gained 14.00%.
