BSE
Code: 540719 NSE Code: SBILIFE
SBI Life Insurance - Performance
for the half year ended September 30, 2018
·
New
Business Premium increased by 30%
·
Protection
New Business Premium increased by 142%
·
Unit
linked New Business Premium increased by 15%
·
Individual
Rated Premium increased by 11%
·
Profit
after tax increased by 12% to `
6.0 billion
·
Value
of New Business (VoNB) increased by 21.8%
·
VoNBmarginincreased
to 17.3% and on effective tax rate basis is at 19.2%
·
Indian
Embedded Value (IEV) increased by 10.1% to `
199.1 billion
Key
measures of performance
(`inbillion)
|
Particulars
|
H1 FY 2019
|
H1 FY 2018
|
YoY
|
FY
2018
|
FY
2017
|
YoY
|
|
Revenue
Parameters
|
|
|
|
|
|
|
|
New Business
Premium (NBP)
|
55.7
|
42.9
|
29.9%
|
109.7
|
101.4
|
8.1%
|
|
Renewal Premium
(RP)
|
68.7
|
49.6
|
38.6%
|
143.9
|
108.7
|
32.3%
|
|
Gross Written Premium (GWP)
|
124.4
|
92.5
|
34.6%
|
253.5
|
210.2
|
20.6%
|
|
Individual Rated
Premium (IRP)
|
34.1
|
30.6
|
11.4%
|
77.9
|
59.4
|
31.2%
|
|
New Business Annualized
Premium Equivalent (APE)
|
37.0
|
33.8
|
9.6%
|
85.4
|
67.3
|
26.9%
|
|
Total Protection
NBP
(Individual +
Group)
|
5.9
|
2.4
|
141.7%
|
6.0
|
4.9
|
23.1%
|
|
Total Protection
NBP Share
|
10.5%
|
5.6%
|
-
|
5.5%
|
4.8%
|
-
|
|
Private
Market Share based on IRP1
|
21.9%
|
21.8%
|
-
|
21.8%
|
20.7%
|
-
|
|
NBP Channel mix (%)
(Banca/ Agency /
others)
|
61/21/18
|
66/25/9
|
-
|
62/25/13
|
53/22/25
|
-
|
|
|
|
|
|
|
|
|
|
Financial
Parameters
|
|
|
|
|
|
|
|
Profit after Tax
(PAT)
|
6.0
|
5.4
|
12.2%
|
11.5
|
9.5
|
20.5%
|
|
Indian Embedded Value (IEV) 2
|
199.1
|
180.8
|
10.1%
|
190.7
|
165.4
|
15.3%
|
|
Value of New
Business (VoNB)
|
6.4
|
5.3
|
21.8%
|
13.9
|
10.4
|
33.6%
|
|
New Business Margin (VoNB
Margin)
|
17.3%
|
15.6%
|
-
|
16.2%
|
15.4%
|
-
|
|
Net Worth
|
70.9
|
61.8
|
14.7%
|
65.3
|
55.5
|
17.6%
|
|
Assets under
Management (AuM)
|
1,261.7
|
1,050.7
|
20.1%
|
1,162.6
|
977.4
|
19.0%
|
|
IEV and VoNB Margin using effective tax rate6
|
|
|
|
|
|
|
|
Indian Embedded Value (IEV) 2
|
211.7
|
NA
|
-
|
201.7
|
NA
|
-
|
|
Value of New
Business (VoNB)
|
7.1
|
NA
|
-
|
15.7
|
NA
|
-
|
|
New Business Margin (VoNB
Margin)
|
19.2%
|
NA
|
-
|
18.4%
|
NA
|
-
|
|
|
|
|
|
|
|
|
|
Key
Financial Ratios
|
|
|
|
|
|
|
|
Operating expense
ratio3
|
7.8%
|
8.6%
|
-
|
6.8%
|
7.8%
|
-
|
|
Commission ratio
|
4.1%
|
4.7%
|
-
|
4.4%
|
3.7%
|
-
|
|
Total cost ratio4
|
12.0%
|
13.3%
|
-
|
11.2%
|
11.6%
|
-
|
|
Persistency Ratios
(based on premium) 5
|
|
|
|
|
|
|
|
13th month persistency
|
83.2%
|
81.3%
|
-
|
83.03%
|
81.07%
|
-
|
|
25th month persistency
|
74.8%
|
74.5%
|
-
|
75.18%
|
73.86%
|
-
|
|
37th month persistency
|
71.0%
|
67.8%
|
-
|
70.02%
|
67.36%
|
-
|
|
49th month persistency
|
64.4%
|
63.1%
|
-
|
63.85%
|
62.46%
|
-
|
|
61st month persistency
|
57.5%
|
62.1%
|
-
|
58.43%
|
67.18%
|
-
|
|
Solvency Ratio
|
2.21
|
2.09
|
-
|
2.06
|
2.04
|
-
|
|
Return on Equity
(RoE)
|
17.8%
|
18.4%
|
-
|
19.0%
|
18.6%
|
-
|
1.
Source: Life
insurance council
2.
Embedded Value
and related numbers forFY17, FY18 and H1FY19 have been reviewed by Independent
Actuary. H1FY 18 numbers are based on management estimates
3.
Operating expense
ratio = Operating expenses / Gross Written Premium (GWP)
4.
Total cost ratio
= (Operating expenses + Commission + Provision for doubtful debt and bad debt
written off) /GWP
5.
The persistency
ratios are calculated as per IRDA/ACT/CIR/MISC/035/01/2014 circular dated 23rd
January 2014. Single Premium and Fully Paid-Up policies are considered in above
calculation. Group Business where persistency is measurable is included.
Persistency Ratios for the period ended September 30, 2018 and September 30,
2017 are 'Upto the Quarter' Persistency Ratios are calculated using policies
issued in September to August period of the relevant years
6.
Effective tax
rate assumes that a proportion of the projected profits are tax exempt on
account of tax deductions available on income from dividends and tax free bonds.
7.
NA – Not
available
N.B:
Refer the section on definitions, abbreviations and explanatory notes
TheBoard
of Directors of SBI Life Insurance Company Limited approved and adopted its
audited financial results for the half year ended September30, 2018, following
its meeting on Friday, October 19, 2018 in Mumbai. The disclosure of financial
results submitted to exchanges is annexed to this release.
Business
growth and market share
·
New
Business Premium (NBP) has increased by 29.9% from `42.9 billion in H1 FY 2018 to `55.7 billion in H1 FY 2019.
·
Individual
rated premium (IRP) has increased by 11.4% from ` 30.6 billion in H1 FY 2018 to ` 34.1 billion in H1 FY 2019.
·
Individual
New Business Premium has shown consistent growth and is increased by 11.6% from `33.3 billion in H1 FY
2018 to `37.2 billion in H1
FY 2019.
·
Individual
unit linked New Business Premium has increased by 15.0% from `23.8 billion in H1 FY 2018 to ` 27.4 billion in H1 FY 2019.
·
The Company has registered growth in savings and
protection business reflecting balanced product mix. Total protection new business
premium has increased by 141.7% from` 2.4 billion in H1 FY 2018 to `5.9
billion in H1 FY 2019. The share of total protection NBP (individual and group)
has increased from 5.6% in H1 FY 2018 to 10.5% in H1 FY 2019.
·
New
Business APE increased by 9.6%in H1 FY 2019to `37.0billion
from ` 33.8billion
for the same period last year.
·
Robust
growth in GWP of 34.6% to ` 124.4
billion in H1 FY 2019, due to strong growth in individual renewal premium by 42.0%
to ` 63.62
billion and also due to increase in group single premium by 130.8% from ` 7.8 billion to `18.0 billion.
Cost
Efficiency
·
Total
Cost ratio has decreased to 12.0% in H1 FY
2019, from 13.3% in H1 FY 2018
§
Commission
ratio has decreased to 4.1% in H1 FY 2019,
from 4.7% in H1 FY 2018
§
Operating
Expense ratio stood at 7.8% in H1 FY 2019 as
against 8.6% in H1 FY 2018
Profitability
·
Value
of New Business (VoNB) increased by 21.8% to`6.4billion inH1 FY2019
·
VoNB
margin increased by 170 bps from 15.6 % inH1 FY2018 to 17.3%inH1 FY2019
·
Value
of New Business (VoNB) stood at ` 7.1
billion for H1 FY2019 (with effective tax rate)
·
VoNB
margin increased from 18.4 % for FY2018 to 19.2% for H1 FY2019 (with effective
tax rate)
·
PAT
increased by 12.2% from `5.4billion in H1 FY 2018 to `6.0billion in H1 FY 2019
Persistency
·
Robust
13th month persistency of83.2%inH1 FY2019 as compared to 81.3%inH1 FY 2018
·
Strong
growth in 37th month persistency ratio from 67.8%
in H1 FY 2018 to 71.0% in H1 FY 2019
Assets
under Management
·
AuMhasgrown
by 20.1%from `1,050.7 billion as of September 30, 2017 to
`1,261.7billion
as of September30, 2018 with debt-equity mix of 77:23. 90% of the debt
investments are in AAA and Sovereign instruments.
Net worth and capital position
·
The
Company’s net worth increased by 14.7% from `61.8billion as at September30, 2017
to `70.9billion
as at September30, 2018.
·
The
solvency ratio as at September 30, 2018 was at 2.21 as against the regulatory
requirement of 1.50.
·
Return on Equity (RoE) of 17.8% in H1 FY 2019 as compared to 18.4%
in H1 FY 2018.
Distribution network
·
The Company has strong distribution network of 169,662 trained
insurance professional and widespread operations with 848 offices across
country.
·
The
Company has diversified distribution network comprising of strong bancassurance
channel, agency channel and others comprising of corporate agents, brokers,
micro agents, common service centres, insurance marketing firms, web
aggregators and direct business. NBP channel mix for H1
FY 2019 is bancassurance channel 61%, agency channel 21%, and other channels 18%.
Definitions,
abbreviations and explanatory notes
·
New Business Premium (NBP): Insurance premium
that is due in the first policy year of a life insurance contract or a single
lump sum payment from the policyholder
·
New Business Annualized Premium
Equivalent (APE):The sum of annualized first year premiums on regular premium
policies, and 10% of single premiums, written by the Company during the fiscal
year from both retail and group customers
· Individual Rated Premium (IRP):New business premiums written by the Company under individual
products and weighted at the rate of 10% for single premiums
· Renewal Premium: Life insurance premiums falling due in the years subsequent to the first
year of the policy
· Embedded Value:
The measure of the consolidated value of shareholders’ interest in the covered
life insurance business, which is all life insurance business written by the
Company since inception and in-force as on the valuation date (including lapsed
business which have the potential of getting revived). The Embedded Value of
the Company has been determined on the basis of the Indian Embedded Value (IEV)
Methodology calculated as per APS 10 set forth by the Institute of Actuaries of
India (IAI)
· Value of New Business (VoNB): VoNB is the present value of expected future earnings from
new policies written during a specified period and it reflects the additional
value to shareholders expected to be generated through the activity of writing
new policies during a specified period.
· Value of New Business Margin / VoNBMargin:VoNB Margin is the ratio of VoNB to
New Business Annualized Premium Equivalent for a specified period and is a
measure of the expected profitability of new business
· Solvency Ratio:
Solvency ratio means ratio of the amount of Available Solvency Margin to the
amount of Required Solvency Margin as specified in form-KT-3 of IRDAI Actuarial
Report and Abstracts for Life Insurance Business Regulations
· Net worth: Net
worth represents the shareholders’ funds and is computed as sum of share
capital and reserves including share premium, share application money and fair
value change account net of debit balance in profit and loss account
About SBI Life Insurance
SBI
Life Insurance Company Limited (“SBI Life”/ “the Company”), established in
2001, is a joint venture between State Bank of India and BNP Paribas Cardif
S.A. and is one of the leading life Insurance companies in India. SBI Life has
an authorized capital of `
20.0 billion and a paid up capital of `
10.0 billion.
SBI
Life offers a comprehensive range of life insurance and pension products at
competitive prices, ensuring high standards of customer service and world class
operating efficiency. The Company offers individual and group products which
include savings and protection plans to address the insurance needs of diverse
customer segments.
SBI
Life has a multi-channel distribution network comprising of an expansive
Bancassurance channel with SBI, which has an unrivalled strength of over 22,000
branches across the country. SBI Life also has a large and productive agent
network comprising of 113,045 agents, as on September30, 2018. The Company’s
other distribution channels include direct sales and sales through corporate
agents, brokers, insurance marketing firms and other intermediaries. As on September30,
2018, the Company has a widespread network of 848offices across the Country to
address customer needs effectively and efficiently. The Company had an AuM of `1,261.7billion
as of September30, 2018.
The Company is listed on National
Stock Exchange (“NSE”) and The Bombay Stock Exchange (“BSE”).
Disclaimer
Except for the
historical information contained herein, statements in this release which
contain words or phrases such as'will', ‘expected to’, etc., and similar
expressions or variations of such expressions may constitute
'forward-lookingstatements'. These forward-looking statements involve a number
of risks, uncertainties and other factors that could causeactual results,
opportunities and growth potential to differ materially from those suggested by
the forward-lookingstatements. These risks and uncertainties include, but are
not limited to, the actual growth in demand for insurance andother financial
products and services in the countries that we operate or where a material
number of our customers reside,our ability to successfully implement our
strategy, including our use of the Internet and other technology our
exploration ofmerger and acquisition opportunities, our ability to integrate
mergers or acquisitions into our operations and manage therisks associated with
such acquisitions to achieve our strategic and financial objectives, our growth
and expansion indomestic and overseas markets, technological changes, our
ability to market new products, the outcome of any legal, tax orregulatory
proceedings in India and in other jurisdictions we are or become a party to,
the future impact of new accountingstandards, our ability to implement our
dividend policy, the impact of changes in insurance regulations and other
regulatorychanges in India and other jurisdictions on us. SBI Life Insurance Company
Limited undertakes no obligation to update forwardlookingstatements to reflect
events or circumstances after the date thereof.
This release does not constitute an offer of
securities.
For
investor queries please call SangramjitSarangi at + 91 22 6191 0281or email investorrelations@sbilife.co.in
For
further press queries please call SantoshSettyat +91-22-6191 0034 / DivyaShukla
at +91-22-6191 0044 or emailsantosh.setty@sbilife.co.in/ divya.shukla@sbilife.co.in
(`1
billion = ` 100
crore)
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