The largest public sector bank, SBI's (State Bank of India) Insurance arm 'SBI Life Insurance' share, surged over 3.5 per cent on Dalal Street, a day after the company declared its Q1 FY25 results.
SBI Life's share opened on Rs 1,649 per share today. The counter touched a day high of Rs 1,698.00 per share on the bourses today. SBI Life also recorded an all-time high at Rs 1698.00 per share.
Q1 FY25 financials
Net Profit
A strong increase in premiums helped private insurer SBI Life report a 34.3 per cent year-over-year (Y-o-Y) increase in net profit to Rs 519.52 crore for the April–June quarter of FY25 (Q1 FY25) on Wednesday.
New business premium
The company's new business premiums increased from Rs 6,210 crore in the same period last year to Rs 7,030 crore in Q1 FY25, YoY growth of 13 per cent.
During this time, its annualized premium equivalent (APE) increased by 20 per cent year over year to Rs 3,640 crore. APE is the total of 10 per cent weighted single premiums and annualized first-year regular premiums.
VNB (Value of new business)
In comparison to Rs 870 crore during the same period last year, the value of new business (VNB) climbed by 12 per cent year over year to Rs 970 crore in Q1 FY25. The present value of all future profits to shareholders, as determined at the time the new business contract was written, is known as VNB.
In comparison to the corresponding quarter last year, when the VNB margin was 28.8 per cent, the company's reported VNB margin contracted to 26.8 per cent in Q1 FY25. For life insurance companies, VNB margins serve as an indicator of profitability.
