Financial Capital
At SBI Life, we believe that ensuring the stability of our financial base is key to realising our growth ambitions and creating value for all our stakeholders. Our financial capital helps create a solid foundation to drive profitability, deliver sustainable growth, maintain prudent risk assessment and maintain healthy solvency ratio. Our robust, prudent, and agile financial management and risk management framework helps us build our financial reserves and set the foundation for a sustainable business.
We are committed to delivering sustainable long-term returns and holistic growth to all our stakeholders. We are strategically shaping a roadmap for transitioning our relentless pursuit of excellence into an era where our prudent financial management strategy empowers us further to maximise operational efficiencies, deliver robust revenue and profit growth, and create value for all our stakeholders.
Solvency Ratio
Growth in Embedded Value
Operating Return on Embedded Value
Growth in VoNB
Growth in Profit After Tax
Growth in AUM
Remained focussed on growing the business at a sustainable rate
Offered a varied product basket to align with customer demand
Created a balanced distribution mix
Maintained best-inclass cost ratio and persistency levels
During the year, we continued to take further strides towards our goals on profitability and sustainable growth. We are also one of the most profitable private life insurers in India and are constantly looking to improve our operational efficiencies and our financial robustness.
We successfully maintained new business thrust and delivered enduring performance, and continue to be the market leader across individual and total business. The Company issued 22.6 lakh policies in FY 2024, reflecting our intent to increase penetration and achieve holistic growth. Our performance also demonstrates our distribution strength and expansive outreach to customers in a cost-efficient manner.
With a strong focus on operational excellence, stakeholder value creation, and sustainable growth and profitability, we are not only thriving in an ever-evolving insurance landscape, we have also emerged as a leader in the private insurance space.
Total New Business Sum Assured grew 25% YoY, outperforming the private insurance industry, registering 19% growth, and also outperforming 22% overall industry growth.
We are constantly looking to improve our operational efficiencies. The Company’s OPEX ratio stood at 4.9% for the year ended March 31, 2024, while Total Cost Ratio stood at 8.9%. This year again, we reported an improvement in our persistency ratio in individual regular premium, which is a vital indicator of our performance, and highlights the commitment of our customers to renew their policies.
The 13th month persistency of Individual Regular Premium stands at 86.8%. Its 13th and 61st month persistency improved by 126 basis points and 295 basis points, respectively, indicating policyholders’ satisfaction with products and services. It presents the percentage of its persistent policyholders paying renewal premium to renew their policies on a yearly basis.
A steady upward trajectory in our net worth reflects our commitment to financial strength and value creation instilling confidence in our esteemed shareholders
We consider ourselves long-term stewards of our customers’ assets. We also recognise our responsibility to effectively integrate associated considerations into investment decisions, helping finance a more sustainable economy. Our investment activities help our customers today and over the long term. As a life insurer, we remain committed to servicing our customers’ evolving needs, providing product solutions that support their financial resilience and enabling them to face the future with confidence.
*Persistency Ratio - Premium Basis (Regular Premium/Limited Premium Payment under Individual Category) Term policies of only Individual Segment
1 Total cost ratio is operating expenses including commission, provision for doubtful debts and bad debts written off divided by Gross Written Premium; Components may not add up to total due to rounding of
Consistent and sustainable business growth
Maintaining balanced product mix
Augmenting shareof high-margin protection business
Maintaining operating efficiencies (cost ratios and improving persistency)
Increased digitalisation for superior customer experience, distributor development and employee engagement
Effective risk management
Maintaining a consistent dividend policy
SBI Life’s consistent focus on profitability facilitates holistic value creation. Its culture of excellence enables us to identify the latent needs of our customers and venture into new market segments and product variants ensuring customer needs are met.
I live outside Kolkata and Ms. Sengupta Ghosh of SBI Life insurance Kolkata contacted me over phone and email regarding the maturity of my life insurance policy. I am very happy to say that I received the payout due to her efforts.