- New Business Premium: INR382.4 billion, growth of 29%.
- Individual New Business Premium: INR238.3 billion, growth of 14%.
- Gross Written Premium: INR814.3 billion, growth of 21%.
- Protection New Business Premium: INR41.7 billion, growth of 15%.
- Profit After Tax: INR18.9 billion, growth of 10%.
- Value of New Business (VoNB): INR55.5 billion, growth of 9%.
- VoNB Margin: 28.1%.
- Embedded Value: INR582.6 billion, growth of 27%.
- Embedded Value Operating Earnings: INR100.5 billion, growth of 11%.
- Operating Return on Embedded Value: 21.8%.
- Assets Under Management (AUM): INR3,889.2 billion, growth of 27%.
- Solvency Margin: 1.96.
- Net Promoter Score (NPS): 72, up from 59.
- Renewal Premium: INR431.9 billion, growth of 14%.
- Annualized Premium Equivalent (APE): INR197.2 billion, growth of 17%.
- Number of New Policies Issued: 22.6 lakh.
- Number of Lives Covered: 37.9 million, growth of 84%.
- Total New Business Sum Assured: Growth of 25%.
- Individual ULIP New Business Premium: INR137.8 billion, 58% of individual new business premium.
- Individual Protection New Business Premium: INR9.5 billion.
- Group Protection New Business Premium: INR32.1 billion, growth of 22%.
- Credit Life New Business Premium: INR22.6 billion, growth of 9%.
- Other Group Protection Business: INR9.5 billion, growth of 66%.
- Annuity Business: INR60.2 billion, 16% of new business premium.
- Individual Annuity Business: INR50.7 billion, growth of 22%.
- Total Annuity and Pension New Business: INR89.3 billion, growth of 6%.
- Bancassurance Business Contribution: 64%, growth of 9% in individual new business premium.
- Agency Channel New Business Premium Growth: 22%, contributes 18%.
- Number of Agents: 246,078, growth of 18%.
- Other Channels Growth: 49% in individual new business premium, 17% in individual APE.
- OpEx Ratio: 4.9%.
- Total Cost Ratio: 8.9%.
- 13th Month Persistency: 86.8%.
- Death Claim Settlement Ratio: 99.2%.
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- New business premium registered a growth of 29% over the previous year, reaching INR382.4 billion.
- Gross written premium grew by 21% to INR814.3 billion.
- Profit after tax increased by 10% to INR18.9 billion.
- Assets under management grew by 27% to INR3,889.2 billion.
- Customer satisfaction improved significantly, with the Net Promoter Score rising from 59 to 72.
Negative Points
- Individual protection new business premium declined by 5%.
- Credit life new business premium grew by only 9%, indicating slower growth in this segment.
- Bancassurance channel showed muted growth, with low single-digit increases.
- 37th month persistency rate dropped to 71.3%, attributed to the COVID cohort.
- March performance was weaker than expected, despite strong January and February numbers.
Q & A Highlights
Highlights of SBI Life Insurance Co Ltd (BOM:540719, Financial) Q4 FY24 Earnings Call
Q: Can you explain the significant release in mortality, morbidity, and operating variance in the EV movement?
A: The positive variance is due to prudent assumption settings and better-than-expected experience across all business lines, including group and individual protection. (Prithesh Chaubey, Appointed Actuary)
Q: What contributed to the improvement in VNB margins?
A: The margins have remained stable due to optimized product offerings and segmented approaches. However, the shift in product mix, particularly the increase in ULIP business, has impacted margins. (Prithesh Chaubey, Appointed Actuary)
Q: How should we think about margins and growth for FY25?
A: While ULIP was popular due to strong equity markets, we aim to grow our protection and non-par business for a healthier product mix, which should positively impact margins. (Amit Jhingran, CEO & MD)
Q: Can you provide more details on the individual annuity business and its impact on VNB margins?
A: The annuity business is growing due to the increasing retired population and is profitable, enhancing overall margins. (Amit Jhingran, CEO & MD; Prithesh Chaubey, Appointed Actuary)
Q: Why was there muted growth in the banca channel in March despite strong performance in January and February?
A: The seasonality of the banca channel typically shows the best performance in December. The muted growth in March aligns with the overall industry trend. (Amit Jhingran, CEO & MD)
Q: What is the outlook for the protection business, given the muted growth in individual protection and credit life?
A: Protection remains a focus area, and we plan to introduce new products to boost growth in individual protection. (Amit Jhingran, CEO & MD)
Q: Can you explain the negative INR285 crores of rewards in Q4 results?
A: This is due to the reversal of provisions made for banca partner discussions, which were achieved as per our estimates. (Sangramjit Sarangi, CFO)
Q: What is driving the significant jump in group savings this year?
A: Group savings are lumpy and depend on corporate requirements. We maintain control over this segment, keeping it between 18% to 20% of total NBP. (Sangramjit Sarangi, CFO)
Q: How do you view competition in Tier 2 and Tier 3 cities, and its impact on margins?
A: Our strong presence in these areas through SBI branches and agency networks mitigates competitive pressure. We focus on customer experience rather than playing the commission game. (Amit Jhingran, CEO & MD)
Q: What are the economic assumption changes impacting EV and VoNB?
A: Economic assumption changes reflect the existing book and new business composition. The impact varies due to differences in unit-linked and non-linked business. (Prithesh Chaubey, Appointed Actuary)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
