SBI Life Insurance Q3 net profit up 47.5%

Private life insurer SBI Life Insurance posted a 47.5 percent year-on-year (YoY) increase in its December quarter (Q3) net profit at Rs 389.77 crore.

The insurer's net earned premium rose by 28 percent YoY to Rs 11,694.51 crore in Q3.

The Value of New Business (VoNB) increased by 27 percent to Rs 1,470 crore for the nine months (9M) of FY20. Further, the VoNB margin increased by 80 bps to 18.3 percent in 9MFY20.

The VoNB margin increased by 80 bps YoY to 18.3 percent in 9MFY20.

VoNB 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.

For 9MFY20, the individual new business premium increased by 27 percent YoY to Rs 8,390 crore.

SBI Life increased its private market share based on New Business Premium (NBP) to 22.3 percent in 9MFY20 from 20 percent in the year-ago period.