India’s SBI Life Insurance Company on Friday reported a 53% jump in second-quarter profit, helped by a rise in premiums and as the value of new business rose.
Insurance penetration has traditionally been low in India, but that is slowly changing, especially as more people rush to buy new policies after the pandemic.
Profit rose to Rs 3.77 billion ($45.5 million) in the three months ended September 30, from Rs 2.47 billion a year ago, the company said in an exchange filing.
Net premium income grew 12.4% to Rs 164.77 billion, while income from investments grew 2.8% to Rs 110.37 billion.
SBI Life’s value of new business, or the present value of expected future earnings from new policies, rose 53% between April and September to Rs 21.2 billion.
Its value of new business margin, a measure of the expected profitability of the new business, rose 630 basis points to 31% in the first half.
Embedded value, a measure of future cash flows and a key financial gauge for life insurance companies, stood at Rs 424.1 billion at the end of September.
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