SBI Life Insurance had reported a 26 per cent jump in net profit in the January-March quarter (Q4FY22), by premium growth. The insurer reported a net profit of Rs 672 crore in the quarter compared to Rs 532.38 crore in the year-ago period.

The share issued at premium increased by 12 per cent YoY to Rs 17,434 crore, with the first year premium growing by 5.3 per cent. Renewal and single premium of the insurer grew by 14.6 per cent and 11.2 per cent, respectively, in the same period.

According to ICICI Securities, “Premium growth remained in line, while the shortfall in other income was offset by lesser benefits paid as well as the decline in actuarial liability. As a result, net profit for the quarter was up 26 per cent YoY.”.

For the full year, new business premium grew by 23 per cent to Rs 25,460 crore in FY22, driven by strong growth in regular premium business by 25 per cent. Value of new business (VNB) of the company grew by 39 per cent YoY to Rs 3,700 crore and new business margin, a measure of profitability, stood at 26 per cent, up 270 basis points over last year.

VNB is the present value of expected future earnings from new policies written during a specified period. It reflects the additional value expected to be generated through the writing of new policies during a specified period. The 13th-month persistency stood at 88.35 per cent in FY22 versus 87.92 per cent in FY21.