MESSAGE FROM THE MANAGING DIRECTOR AND CEO
Building a Secured Future Together
Dear Stakeholders,
FY 2022 being on the path of economic recovery for the world, including the insurance industry, we have emerged stronger and more resilient with once again outperforming the industry average.
I am pleased to inform you that SBI Life delivered another year of spectacular performance across all key parameters. This market-leading performance is a reflection of our customers’ strong belief in the ‘SBI Life’ brand. It’s also a testament to our stable and scalable business model, strong financial profile and agile responses to a dynamic environment. Keeping the customer at the heart is something we have been doing right from the very beginning of our business operation. Our emphasis on growing our digital strength is directly linked to increasing customer satisfaction and experience and offering them solutions at attractive prices. Our emerging digital platform, widespread distribution network and relentless workforce have been the backbone to our leadership position amongst the private players.
15 mn+
Lives covered in FY22
We are happy to announce that we have achieved ₹587.60 billion in Gross Written Premium(GWP), touching over 15+ million lives in FY22. During the year, our Asset under Management (AuM) has crossed `2.5 trillion mark. We saw a noteworthy growth across key parameters, with New business Premium(NBP) of ₹254.57 billion registering a y-o-y growth of 23%. We strive to maintain our leadership position in private market while caring for our people and delivering on our commitment to our customers and other stakeholders.
Performance Overview
The COVID pandemic has resulted in a shift in customers’ perception of life insurance as risk cover rather than an investment product. Thus, there is now greater awareness of the need for long-term planning and the crucial role that insurance plays in maintaining Financial Immunity. This attitudinal change of the consumer mindset is increasingly finding reflection in our numbers. Our best-in-class cost ratio, improved persistency and strong premium growth have led to deliver another sound operating year. Our Individual NBP grew from ` 124.99 billion to ` 165.00 billion in FY22 marking a growth of 32%. GWP grew by 17% to ` 587.60 billion in FY 22 mainly due to 25% growth in First Year Premium (FYP) and 12% growth in Renewal Premium (RP) in FY 22. New Business margin registered growth by 270 bps to 25.9% in FY22.
21%
Rise in AUM
Our PAT for FY 2022 stands at ` 15.06 billion with 3% growth as compared to previous year. AuM grew by 21%, surpassing `2.5 trillion mark and stands at ` 2,674.09 billion as on March 31, 2022. VoNB stands at ` 37.04 billion for FY 2022. Our 13th month Persistency ratio of Regular premium/Limited Premium Payment under Individual category stands at 85.2% due to our focus on improving the quality of business and customer retention. We have also maintained our cost efficiency at 8.8%. We have declared Interim dividend of ` 2.0 per share with strong solvency ratio of 2.05.
As financial immunity gets intricately linked to overall health and wellbeing, we have an even greater responsibility of offering the right solutions to our customers. Keeping this in mind, we launched ‘Arogya Shield’ a comprehensive insurance solution that serves the dual purpose of providing both health and life cover, extending an additional layer of protection to the safety net and SBI Life – Smart Platina Plus which provides security, flexibility and reliability through a regular guaranteed long term income, flexibility to suit life goals and financial protection along with tax benefits.
Digital Footprint
Digitalization remains a key to growth in life insurance industry. We, at SBI Life, continue on our path of digital transformation through adoption of various digital initiatives. Our motive is to provide customers with digital servicing platforms for faster hassle-free services and to make the transition from Customer Satisfaction to Customer Delight. We adopted various digital initiatives / strategies for end - to - end digital customer on-boarding to customer servicing. We have integrated with DigiLocker, a secured cloud based storage facility wherein customers can store their policy document in DigiLocker thereby ensuring a safe keeping of their documents.
The next phase of our growth will be driven by our aspiration to become a ‘truly digital’ organisation. An emphasis on technology initiatives across the value chain of agency channel has improved business performance. We are also enhancing the user experience on our website and the applications. Increased adoption of technologies like robotics, block chain and cloud computing are primary drivers of a better cost ratio.
In FY22, digitalisation led us to provide customers with digital servicing platforms for faster hassle-free services and to make the transition from Customer Satisfaction to Customer Delight. The next phase of our growth will be to maintain the momentum of our digitalisation strategy by further offering innovative digital solutions and being a ‘truly digital organisation, while building strong network of togetherness
Independence in thinking
Individuals today believe that they can fulfil their own aspirations and their family ’s needs simultaneously. This change in their mindset reflects in their expectations from life insurance too. Rather than being just a ‘Service provider’, they now expect life insurance to be an ‘enabler.’ An ‘enabler ’ that will help them fulfil their family ’s aspirations along with their own. As a brand, SBI Life believes that independence in thinking is the key to a fulfilling life. As an expression of our unique approach towards life insurance, we have created a new identity. Our identity also consists of a brand line: ‘Apne liye. Apno ke liye ’ It succinctly captures our promise of enabling individuals to explore their wants while securing the needs of their loved ones. Brand’s core that is ‘Independence in thinking’ is our anchor, that guides all of our actions, behaviour and communication with our stakeholders.
Delivering Excellence
Our aim is to secure the financial future of more and more people in our country by providing them the right insurance solution. This will help them build a strong financial immunity in the long run. We were awarded with ‘Insurer of the Year’ - Life Category at the FICCI Insurance Industry Awards 2021.
Way Forward
Indian insurance industry is expected to focus more on increased awareness levels, enabling digitalized payments infrastructure, customer centricity and overall digital enablement going forward.
We challenge ourselves every day to grow constantly, to be our best competition and to grow more agile, more sustainable. As we move forward and grow bigger, digitalization will remain at the core of ensuring customer-centricity. Leveraging our strong technology backbone and digital capabilities, unparalleled reach and innovative solutions, we are well positioned to capitalize on the growth opportunities that India offers and consistently create value for our stakeholder ecosystem, with our customers at the core.
I am excited to move forward with all our stakeholders’ continued support to keep delivering on SBI Life’s promise of providing ‘protection for life’ to our consumers.
I want to express my deepest gratitude to all our shareholders and investors for their continued faith in our abilities. I am grateful to other stakeholders including customers, distribution partners, regulators and government for their endless support. I would like to thank our dedicated workforce for all their hard work and commitment which has enabled us to emerge as an agile Company.
Best wishes,
Mahesh Kumar Sharma
Managing Director and Chief Executive Officer