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It is my privilege to present before you our sixth Integrated Annual Report for the Financial Year 2024. The Report captures the key essence of the year, reflecting major milestones achieved by the Company and the values that truly define SBI Life.
The year was a testament to our commitment to continue enhancing our services, adopting new technologies, and deepening community engagements. We are pleased with the leadership position maintained in India’s life insurance landscape, as we recorded a stellar 29% growth in New Business Premium, outperforming industry growth of 2% and private sector’s growth of 12%.
The insurance industry, which plays a crucial role in safeguarding financial well-being of individuals, families and businesses, has undergone a remarkable metamorphosis in the past two decades, fuelled by increased private sector participation, improved distribution capabilities and enhanced operational efficiencies. The industry is built on the foundation of trust, security, and resilience. Despite economic hurdles such as the potential for sustained inflation and rising interest rates, the growth trajectory highlights the sector’s adaptability in the face of rapidly-evolving customer needs, purchase preferences and changing market dynamics.
The year FY 2024 witnessed solid attempts by the insurance regulator to create a robust framework during a time of multi-dimensional structural changes within the industry. IRDAI committed itself to bolster its vision of a secure, vibrant insurance marketplace in an uncertain world. These imperatives are fashioned at helping policyholders navigate the market, besides also addressing the widening insurance coverage gap.
A recent Swiss Re report addresses India as one of the fastest growing insurance markets in the world. It is poised to emerge as the 5th largest by 2032 in terms of life premium volume. However, life insurance currently occupies a mere 17% of the total household financial savings. India’s growing protection gap also presents the untapped opportunity. An increased share of household savings will be channelled towards different financial savings instruments, including insurance solutions and pension policies.
Moreover, with the advancement of medical science, life expectancy has improved rapidly over the last few decades, and demand for pension and retirement-based products is set to increase with this. These factors, coupled with favourable demographic factors, increasing urbanisation, growth in working population, improving per capita income, rising affluence and a strong focus on financial inclusion are propelling growth in India’s life insurance industry.
With great delight, I place before you the key highlights of SBI Life’s outstanding financial and operational performance in FY 2024 across all business segments. With a widespread distribution network and a diverse range of products and services, your Company has emerged as one of India’s most trusted life insurers. I am happy to share that your Company reported a stellar performance across all operational fronts. Customer outreach was further deepened by covering 37+ million new lives under our insurance safety net registering a growth of 84% over the previous year.
With a customer-first approach, your Company continues to focus on profitable growth as its Gross Written Premium (GWP) came in at ₹ 814.31 billion, driven by 15% YoY growth in First Year Premium (FYP) and 44% increase in Single Premium (SP). New Business Premium (NBP) grew 29% YoY at ₹ 382.38 billion, while Individual NBP rose 14% YoY at ₹ 238.32 billion. The Value of New Business (VoNB) grew 9% during the year to ₹ 55.48 billion, while Indian Embedded Value (IEV) reached at ₹ 582.59 billion as on March 31, 2024, growing by 27%.
Our Assets Under Management (AUM) continued to grow strongly, crossing the ₹ 3.5 trillion milestone, with 27% YoY growth during the year under review. We recorded this remarkable performance sustainably by setting risk-adjusted manageable targets and without taking undue risks.
With a widespread distribution network and a diverse range of products and services, your Company has emerged as one of India’s most trusted life insurers.
In addition to revenue growth, operational efficiency was another catalyst behind healthy profitability. We maintained our cost efficiency at 8.9%, and Solvency Ratio remained strong at 1.96, above the regulatory minimum of 1.5. Our Individual Death Claim Settlement ratio registered a growth of 120 basis points (bps) at 98.3%, which is a testament to our commitment towards the customer.
Your Company also witnessed growth in profitability. Profit After Tax (PAT) stood at ₹ 18.94 billion, growing by 10% YoY. To reward its shareholders further, your Company declared a Dividend of 27% at ₹ 2.70 per share for FY 2024.
Your Company is evolving from being a mere product provider to a critical partner in need. The strength of our determination to focus on customers is different today. By providing them with personalised services, seamless interactions, proactive communication, and transparency, we let our customers know in a simple way why we are relevant to their lives and how we deliver on that relevance. We continue to leverage best-in-class technology and data analytics to tailor products and services as per individual preferences, and enhance customer satisfaction and loyalty. We are committed to delivering need-based and wide range of solutions that address the varied and ever-evolving needs based on customers’ profile, life-stage and goal prioritisation. We are working on further strategies to further enrich the overall experience of our customers.
SBI Life’s thriving distribution network also played a crucial role in driving performance. The Company has garnered an exceptional 17% growth in FY 2024 on an annualised premium basis. This is a result of our initiatives and strategies aimed at augmenting our unparalleled distribution model, well-supported by our digital initiatives on making selling and buying seamless. To expand our business and build a larger customer base, we will continue to improve the Bancassurance channel and increase the number of agents to connect even better with the under-penetrated market segments.
On an Annualised Premium basis, the Bancassurance channel contributed 62% to new business, growing by 13%; the Agency channel contributed 25% to new business, as it grew by 15% YoY; while the remaining channels, comprising direct, corporate agents, brokers, online and web aggregators, contributed 13% as it registered 54% growth YoY. We remain focussed on striking an optimum balance among our various distribution channels and we expect to grow by leveraging multiple drivers and further strengthening the distribution network.
Digital technology has the potential to break the traditional barriers of the insurance sector and provide new-age customers with the convenience they prefer. We are focussed on developing digital ecosystems by integrating digital technologies such as artificial intelligence and data analytics. These tools are revolutionising the way we assess risk, process claims, improve customer experiences and create more personalised insurance solutions.
FY 2024 witnessed major enhancements in SBI Life’s digital footprint, information security, data protection, scalability and improved agility. Voice BOT for renewal calling, Upgrade of CRM Next, Relaunch of ‘Smart Care’ for efficiency, a multi-layered secure network architecture, and Software Defined Wide Area Network (SDWAN) are a few of the improvised, best-in-class digital tools that enhance customer experience and support our ever-growing business volumes. A testament to this is our 13th month Persistency which grew 126 bps at 86.8%, symbolising the quality of our business and our strength in customer retention.
SBI Life’s thriving distribution network also played a crucial role in driving performance. The Company has garnered an exceptional 17% growth in FY 2024 on an annualised premium basis. This is a result of our initiatives and strategies aimed at augmenting our unparalleled distribution model, well-supported by our digital initiatives on making selling and buying seamless.
98.3%
Death Claim Settlement Ratio27%
Growth in Indian Embedded Value (IEV)Environment sustainability and social responsibility are at the forefront of our strategies. By investing in sustainable practices and promoting initiatives that support community resilience, we are committed to improve community well-being and contribute to a more secure and equitable world. With a proactive approach, we are making steady progress towards social responsibility through CSR programmes in the areas of education, livelihood and healthcare. In FY 2024, the Company’s spend on social impact initiatives stood at ₹ 205.41 million, which positively impacted 1 lakh+ beneficiaries across the country.
We remain dedicated to foster environmental sustainability through impactful initiatives on protecting the planet. Our comprehensive approach to achieve this objective encompasses our key initiatives that are focussed on energy conservation, waste management, water conservation, and digitisation, reflecting our stringent resolve to minimise our environmental footprint.
With protection of policyholders’ interests, responsibilities towards rural and social sectors, the establishment of an electronic insurance marketplace, regulation of insurance products, and such other key regulations, the regulator has been instrumental in fostering a robust and inclusive insurance sector in India.
At SBI Life, we are at the forefront of embracing IRDAI’s comprehensive mission of “Insurance for All” by enabling every citizen to have appropriate life coverage, providing wider choice, accessibility and affordability to individuals, and making insurance available to everyone, while comprehending the challenges and offering the right solution to support the mission. We have aligned our business strategies with this vision of IRDAI and other regulatory initiatives, emphasising the importance of consumer empowerment in driving growth of the industry.
Also, by embracing agility and innovation in meeting the evolving needs of customers in the digital age, and fostering brand differentiation, we remain confident of navigating the winds of change – ensuring a future where insurance is not just a product, but a pillar of financial security and empowerment for all. With our wide distribution network, a digital model and our customer-centric insurance products, we are progressing steadfastly towards the noble goal of ensuring “Insurance for All” by 2047 and bridging the insurance gap in the country.
Besides Insurance for All, IRDAI has also undertaken various other initiatives such as Use & File for certain products, reduction in capital requirement for PMJJBY, reduction in capital requirement for ULIPs, relaxing the approval process for raising of sub-debt, and more. These steps are most welcome from the perspective of industry growth as well as the ease of doing business.
IRDAI is already conducting activities on risk-based supervision, risk-based solvency and implementation of IFRS. Technological intervention and various other digital initiatives will also lead to further development of the sector. BIMA Sugam platform targeted at benefiting the customers and aiming at holistic growth of the industry.
Further, the concept of BIMA Vahak, a distribution channel aimed at reaching the untapped and rural areas, preferably women-centric; and BIMA Vistaar, a benefit-based, parametric structure, affordable and comprehensive packaged product for the rural population; is also aligned with the regulator’s vision of “Insurance for All”.
The future of life insurance seems promising, and as a company, SBI Life is well positioned to look to the future with confidence, realising that our commitment to excellence and innovation will drive us forward. By fostering a culture of resilience and continuous improvement, and with our expanding multi-distribution network, committed team members, and best-in-class customer service, we are confident of our ability to navigate the future and maintain our position as a trusted leader and the preferred market player.
As a testament to our quality service, we were acknowledged by various prestigious awards and accolades. During the year, your Company bagged the ‘Quality Award in Service Industry – Indian Merchant Chamber’s Ramkrishna Bajaj National Quality Award 2022’. It became eligible for Global Performance Excellence Award and were awarded as ‘World Class’ in service category at the 23rd Global Performance Excellence Award 2023. These awards and recognitions demonstrate our commitment to achieve excellence across all the spheres of its activities and operations.
The future of life insurance seems promising, and as a company, SBI Life is well positioned to look to the future with confidence, realising that our commitment to excellence and innovation will drive us forward.
In conclusion, I would like to thank all our shareholders and investors for believing in our abilities and for their unwavering support and trust in the Company. I also thank our customers, distribution partners, regulators and government for their unflinching and continuous support.
Last, but not the least, I express my sincerest appreciation to our people for the commitment, dedication and hard work endowed in unlocking SBI Life’s true potential and for driving our core values of integrity and humility to create a transparent, innovative and sustainable environment.
Thank you for being a part of our journey, and I do look forward to achieving greater success with each one of you.
Warm Regards,
