SBI Life Q3 Results: Net profit jumps 71% YoY to ₹551 crore, net premium income rises 11%

The company registered a net profit of ₹322 crore in the year-ago period.

The number, as per news reports, beat analysts' estimates.

The net premium income for the quarter under review increased by 11.3% YoY to ₹24,828 crore, compared to ₹22,317 crore registered in the corresponding quarter of the previous fiscal.

The new business premium came in at ₹10,530 crore, up 8% YoY, while total annualised premium equivalent, or APE, surged 13% to ₹6,940 crore.

Meanwhile, retail annualised premium equivalent rose by 13% to ₹6,450 crore.

New business premium (NBP) is the insurance premium that is due in the first policy year of a life insurance contract or a single lump sum payment from the policyholder.

Further, the value of the new business margin (VNB Margin) dropped 45 basis points (bps) at 26.94% against 27.4% in the year-ago period.

The value of new business 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.

VoNB Margin is the ratio of VoNB to new business annualised premium equivalent for a specified period and is a measure of the expected profitability of the new business.

SBI Life Insurance Company is a life insurance company that was started as a joint venture between the State Bank of India (SBI) and French financial institution BNP Paribas Cardif. SBI has a 55.50% stake in the company, and BNP Paribas Cardif owns a 0.22% stake, as per the available information.