The SBI Life Insurance Company Limited has reported an increase by 13 per cent in new business premium for the nine months of the 2021 fiscal year (9M FY 2021) ending on 31 December 2020.
The company currently leads the private market share with 23.7 per cent stake with a total new business premium worth Rs 14,440 crore.
SBI life reported that its net worth increased by 19 per cent from Rs 8,480 crore as of 31 December 2019 to Rs 10,130 crore 2020. The solvency ratio as of 9M FY 2021 was at 2.34 against the regulatory requirement of 1.50.
The life insurer also announced that the total cost ratio has decreased to 8.5 per cent in 9M FY 2021, from 10.0 per cent in 9M FY 2020. The commission ratio has decreased to 3.4 per cent in 9M FY 2021, from 4 per cent in 9M FY 2020. The operating expense has decreased to 5.1 per cent in 9M FY 2021, from 6 per cent in 9M FY 2020.
The value of new business, however, decreased marginally by two per cent to Rs 1,450 crore in 9M FY 2021.
Meanwhile, HDFC Life reported a 11 per cent increase in new business premium which stood at Rs 13,540 crore for 9M FY 2021. The new business margin stood at 25.6 per cent as against 26.6 per cent a year ago.
The company's net worth increased by 21 per cent to Rs 8,089 crore as of 31 December 2020 from Rs 6,670 crore as on 31 December 2019. The solvency ratio was 202 per cent as of 31 December 2020 as against 195 per cent as of 31 December 2019.
