SBI life has posted slower but steady performance with 12% YoY growth in premium growth to Rs 16477 crore. New business premium grew 8% YoY to Rs 7497 crore while renewal premium increased by 20% YoY to Rs4015 crore. On Annualised Premium Equivalent (APE basis), the growth declined by 2% YoY in Q2FY23. However, on 1HFY23 basis, APE growth is healthy at 22% YoY to Rs 6830 crore
Private market share based on rated individual premium was up from 24% to 25.3% on YoY basis in H1FY23
VNB margin has improved by 630 bps YoY to 31% in 1HFY23 and this was mainly on account of strong new business growth and change in product mix. Non-Par segment which generally has higher margin contributed 26% in 1HFY23 compared to 9.5% in H1FY22
AUM grew at a decent pace of 16% YoY to Rs 282630 crores. Shareholders and policyholders (excluding linked liabilities) assets together witnessed healthy growth at 17%. Assets held in lieu of linked products rose ~14% YoY. Income from investment boosted sequentially and got reported at Rs 11037 crore
Commission ratio declined ~30 bps QoQ but increased ~70 bps YoY, to 4.3% while Opex ratio declined to 5% from 6.6%. Consequently, total cost ratio declined by ~200 bps QoQ but rose 70 bps YoY at 9.4% in Q2FY23
Steady premium growth coupled with strong investment income resulted into a surplus of Rs 360 crore and PAT at Rs 377 crore; up 53% YoY and 43.3% QoQ, ahead of our estimates
Premium accretion remained on a slower track in line with expectation, though control on expenses and higher appropriation led to higher than expected earnings. Revival in business growth to earlier trajectory to drive valuation ahead.
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