Shares of SBI Life Insurance Company surged 5 per cent to Rs 1,005 on the BSE in intra-day trade on Tuesday after the company reported healthy premium growth, improved profitability and strong value of new business (VNB) margin uptick. The stock hit a 52-week high today, quoting close to its record high level of Rs 1,030, touched on October 30, 2019.
However, at 09:42 am, the stock had erased its entire morning gain, and was trading 1 per cent lower at Rs 948, falling 6 per cent from its intra-day high. In comparison, the S&P BSE Sensex was flat at 48,713 points. In the past one week, the stock has outperformed the market by gaining 8 per cent, against 0.18 per cent decline in the benchmark index.
Shares of SBI Life Insurance gained 4 per cent to hit a 52-week high of Rs 965 on the BSE in intra-day trade on Tuesday after reporting impressive growth (more than 60 per cent) in new business premiums (NBP) in the month of February. NBP is the premium acquired from new policies for a particular year. The stock surpassed its previous high of Rs 954.65, touched on January 8, 2021. It hit a record high of Rs 1,030 on October 30, 2019.
February 2021 saw life insurers recording impressive 21 per cent growth in NBP to Rs 22,425 crore, compared with Rs 18,533 crore in the same period, a year ago. Life Insurance Corporation of India (LIC) recorded 24 per cent growth in NBP to Rs 12,921 crore, compared with Rs 10,405 crore. Private insurers, on the other hand, saw their NBP growing 16 per cent in February to Rs 9,505 crore, compared with Rs 8,129 crore YoY.