SBI Life Q3 results: Net profit falls 40% to Rs 233 crore due to Covid provisions and policy liabilities

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SBI Life Q3 results: Net profit falls 40% to Rs 233 crore due to Covid provisions and policy liabilities


KOLKATA: SBI Life Insurance reported a 40 per cent fall in net profit for the December quarter due to rise in Coronavirus-linked provisions and policy level liabilities.

The insurer’s net profit was at Rs 233 crore as against Rs 390 crore in the year ago period. Its net premium collection was 18 per cent higher at Rs 13,767 crore with the bancassurance channel contributing more than half of it.

The company has kept an additional reserve of Rs 70 crore resulting from Covid-19 pandemic over and above the policy level liabilities and the same have been provided for in the actuarial liability, based on the impact of the pandemic on business and financials.

“In view of seasonality of the industry, the financial results for the quarter and nine months ended December 31, 2020 are not indicative of the results that may be expected of any other interim period or full year,” the company said.

Its asset under management has grown by 28 per cent to Rs 209500 crore as on December 31, 2020 with debt-equity mix of 73:27. Its net worth rose by 19 to Rs 10130 crore. Solvency ratio was at 2.34 as against the regulatory requirement of 1.50.

SBI Life’s share price fell 2 per cent Friday to Rs 861.60 on BSE.





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