SBI Life Insurance Company’s shares rose 9.6% on Friday in intraday trading to Rs 1,304.45 on the BSE, setting a new 52-week high. The insurer reported an 18% year-on-year (YoY) increase in net profit to Rs 263 crore in the April-June quarter of 2022-23, boosted by a solid increase in gross written premium. The company’s net profit was Rs 223 crore in the same time the previous year.

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The stock was 8.76% higher at Rs 1294.95 at 11:30 AM compared to the S&P BSE Sensex’s 0.89% increase. The stock’s previous 52-week high was Rs 1,293, set on January 7, 2022.

However, on a sequential basis, net profit was down nearly 60%. In Q1FY23, its gross written premium increased 35% year on year to Rs 11,350 crore.

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The annualised premium equivalent (APE) increased by 80% year on year to Rs 2,900 crore. APE is calculated by adding the entire value of regular – or recurring – premiums plus 10% of any new single premiums written for the fiscal year.

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The insurer’s value of the new business (VNB) – the current value of future earnings from policies issued over a period – increased by 130% to Rs 880 crore in Q1FY23, compared to Rs 380 crore in the previous period. Its VNB margins – a measure of life insurers’ profitability – were 30.4%, up from 23.7% the previous year.

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“The notable improvement in VNB margin was primarily driven by a shift in underlying product mix with a larger share of high-margin products such as non-par savings and protection.  Together, they constituted 39 per cent of APE in 1QFY23 v/s 20 per cent, a year ago. Retail protection APE growth of 54 per cent YoY to Rs 200 crore is commendable, considering the muted performance of private peers,” Motilal Oswal Financial Services said.