Kolkata: Life Insurance reported nearly three-fold rise in net profit for the March 2021 quarter at Rs 185 crore compared with Rs 64 crore in the year-ago period, largely on account of sharp drop in actuarial liability.
The insurer’s value of new business (VBN), a measure of profitability, expanded 31% year-on-year (YoY) at Rs 775 crore for the quarter against Rs 591 crore a year ago. This was despite a 6.7% fall in new business premium to Rs 4,788 crore against Rs 5,133 crore.
board approved a final dividend of 55 paise per equity share for FY2022. The proposed premium is 0.55% of an equity share of face value Rs 10.
“Despite the disruptions caused by the third wave of COVID-19, which impacted productivity in January and February, we were able to demonstrate resilience in our operations,” NS Kannan, managing director of the company said.
Claims and benefit payouts for the quarter were lower at Rs 8,004 crore against Rs 8,318 crore in the year-ago period.
The company’s net profit for FY22 declined to Rs 754 crore from Rs 9.60 crore on a 33% rise in VBN at Rs 2,163 crore. VNB margin was 28% for the full year as compared with 25% in the preceding fiscal. New business premium rose 15.4% at Rs 15,036 crore against Rs 13,032 crore for the same period.
“In March, we posted the best-ever monthly sales since inception. This helped grow our VNB by 33% with a robust VNB margin,” Kannan said.
Claims and benefits payout for the year was 30% higher at Rs 29,359 crore, primarily on account of an increase in surrenders/withdrawals and death claims. The company had COVID-19 claims (net of reinsurance) of Rs 1,017 crore.
The company’s total assets under management (AUM) rose 12.3% to Rs 2.4 lakh crore at the end of March. It had a debt-equity mix of 53:47 with 97.8% of the debt investments in AAA-rated securities and government bonds.
Its net worth was Rs 9,163 crore while the solvency ratio was 204.5% at the end of the fiscal, against the regulatory requirement of 150%.
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