New Delhi (Anish Yande): Shares of SBI Life Insurance rose by 3 percent on Tuesday's trading session. The shares of the insurer grew following the announcement of its results for the quarter ended March 2021.
SBI Life Insurance's share opened at Rs 998 per share from its previous close of Rs 958 per share on Friday. The shares of the insurance company rose to an intraday high of Rs 1,005 per share.
SBI Life Insurance March quarter results:
SBI Life Insurance had reported a net profit of Rs 530.67 crore in the March quarter of 2020. The life insurance company's net profit rose to Rs 532.38 crore in the quarter ended March 2021 quarter.
For the fiscal year 2021, the net profit of SBI Life Insurance was at Rs 1,456 crore. The income of the bank rose to Rs 82,085 crore during the fiscal year soared as compared to Rs 43,843 crore in the previous fiscal.
The new business premium of the insurer grew to Rs 2,062 crore, at an increase of 24 percent. The new business premium in the corresponding quarter of the previous fiscal was at Rs 16,592 crore. SBI Life Insurance's renewal premium rose by 23 percent to Rs 2,963 crore in the March quarter of FY21.
The first-year premium of SBI Life Insurance was at Rs 2522 crore in the March quarter which increased to Rs 3660 crore, at an increase of 45% YoY.
Net premium income rises in March quarter:
The net premium income was at Rs 11,863 crore in the March quarter of FY20. Net premium income rose to Rs 15,556 crore in the quarter ended March FY21. As of March 31, 2021, the company's assets under management rose to Rs 2,20,871 crore by 38 percent as compared to Rs 1,60,360 crore in the previous fiscal.
Value of new business grew to Rs 2,334 crore, at a growth of 16%. The value of the new business margin rose from 18.7 percent in FY20 by 170 bps to 20.4 percent in FY21. The regulatory requirement for solvency ratio is at 1.50 and SBI Life Insurance's solvency ratio was recorded at 2.15.
The board of directors at SBI Life Insurance held a meeting on March 25, 2021. The company's board declared an interim dividend of Rs 2.50 per equity share with a face value of Rs 10 each for the financial year 2021.
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