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Ladies and gentlemen, good day, and welcome to Q1 FY '23 Earnings Conference Call of SBI Life Insurance Company Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Mahesh Kumar Sharma, MD and CEO, SBI Life Insurance Company Limited. Thank you, and over to you, Mr. Sharma.
Yes. Thank you very much. Good evening, everyone, and we heartily welcome you all to the results update call of SBI Life Insurance for the quarter ended June 30, 2022. An update on financial results can be accessed on our website as well, as well as on the websites of Bombay Stock Exchange. Along with me, I have Sangramjit Sarangi, President and CFO; Ravi Krishnamurthy, President of Operations and IT; Abhijit Gulanikar, President of Business Strategy; Subhendu Bal, CRO; Prithesh Chaubey, Appointed Actuary; and Smita Verma, SVP, Finance and Investor Relations. Now let me give some key highlights for this quarter ended 30th June 2022. New business premium registered a growth of 67% year-on-year and stands at INR 55.9 billion leading to a private market leadership. Individual new business premium stands at INR 34.3 billion with a strong growth of 87% and private market share of 24.5%. Gross written premium stands at INR 113.5 billion, growth of 35%. Protection new business premium grew by 63% to INR 7 billion. Profit after tax stands at INR 2.6 billion, with an 18% growth over corresponding quarter last year. Value of new business is INR 8.8 billion, registering a strong growth of 130% over INR 3.8 billion in June 2021. And the VoNB margin is at 30.4%, which is an improvement of 665 basis points over 23.7% in June '21. We have aligned the value of new business and VoNB margin for quarter ended 30th June 2021 in line with the 31st March 2022 disclosures. Assets under management grew by 13% to INR 2.623 trillion. Robust solvency ratio of 2.21 against regulatory requirement of 1.50. I would also like to highlight on a few key initiatives taken by the company. Considering and keeping the pace with customer needs, we have launched SBI Life Smart Annuity Plus. It offers a comprehensive range of ability with an option of deferred annuity payout. It is due to broaden our reach as we lived our tied up with Paschim Banga Gramin Bank, leading RRB in West Bengal. We have also signed an agreement with major fintech Renewbuy & PhonePe, PhonePe Insurance Booking Services Limited to the agile with changing customer behavior. With this, we have successfully delivered customer-centric profitable growth in this quarter as well. We will update you on each of the key elements in detail. Let me start with the premium being one of the 5 focus areas of the company, individual new business has grown to INR 34.3 billion, with a growth of 87% year-on-year. Single premium contribution is 28% of the individual new business premium, which is mainly attributed to growth in individual annuity product. The company gained private market share by 569 basis points to 24.5%. Our individual rated new business premium stand at INR 25.8 billion with a growth of 86% and private market leadership with a share of 24% having improvement of [ 511 ] basis points over the corresponding quarter last year. Also, group new business premium stands at INR 21.6 billion with a growth of 43%. Having said that, we have collected total new business premium of INR 55.9 billion, registering private market share of 21.9%. The renewal premium grew by 14% to INR 57.6 billion which accounts for 51% of the gross written premiums. To sum up, gross written premiums stand at INR 113.5 billion with a growth of 35%. Total APE stands at INR 29 billion, registering a growth of 80%. Out of this, individual AP stands at INR 26.1 billion with a growth of 87%. During the quarter ended June 30, 2022, totaled 4.14 lakhs new policies were issued and registered a growth of 61% over the quarter ended June 30, 2021. Individual new business sum assured, registered a growth of 52% over the corresponding quarter last year as compared to growth of 6% at private industry level. Considering the adverse impact of COVID-19 in Q1 FY '22, followed by a strong performance in subsequent quarters of FY '22. We expect a steady growth in our performance over the coming quarters at the end of financial year 2023 on a strong healthy growth. Coming to the product mix, we are happy to report that the company has seen strong growth across all product segments. Our guaranteed non par sales products are contributing 23% of individual new business premium. And on a total APE basis, this contributes 28%. Non par guarantee product new business has registered a growth of 621% Y-o-Y, mainly due to the new business contribution of Smart Platina Plus, a new product which we launched in March last year of INR 6.1 billion in the quarter ended June 30, 2022. This product was launched in March, and have seen a strong traction in the new business premium mainly due to the product features [indiscernible] acceptance in the market.
The units has remained one of the flagship segments for the company. Individual unit business is at [ INR 17.6 billion ], which constitutes 51% of individual business premium and had shown a growth of 42%. Individual protection is at INR 2 billion, registered a growth of 55%. Group protection stands at INR 4.9 billion with a growth of 66%. Credit life new business premium has grown by 73% that stands at INR 4.1 billion. On APE basis, protection contribute 11% of new business and registered a growth of 46%. Earlier [indiscernible] business is at INR 6.5 billion and contributes 12% of new business premium. Total annuity and pension underwriting by the company is INR 11.6 billion, registering a growth of 7% over quarter ended 30th June 2021. Group fund management business is at INR 15.2 billion with a growth of 93%. On our distribution product, we have a strength of more than 54,000 CIF and where RRB Bancassurance business contributes a share of 65% and grew by 107% in individual new business premium and on individual APE basis, it stands at INR 17.4 billion with a growth of 100%. Agency, another strong channel registered new business premium growth of 50% and contributed 17% in new business premium. Agency channel individual APE stands at INR 7.6 billion with a growth of 64%. As of June 30, 2022, the total of agents stands at 161,923. There is improvement of 61% in the agents productivity levels on individual NBP basis as compared to the corresponding quarter last year and greater use of technology is assisting in better engagement in the entire value chain from recruitment and trading through to lead generation, sales and customer service. During the quarter, other channels grew by 82% which constitutes direct corporate agents, brokers, online and web aggregators. So this grew by 82% in terms of initial new business premium by 89% in individual APE. Protection new business premium through other channels registered growth of 23%. Partnerships like Indian Bank, UCO Bank, South Indian Bank, Punjab & Sind Bank and Yes Bank registered a growth of 125% overall. These partnerships have started contributing 3% of the individual new business premium. On profitability, the company's profit after tax for the quarter ended 30th June 2022, stands at INR 2.6 billion with an 18% growth Y-o-Y. Our solvency remains strong at 2.21% on June 20, 2022. Value of new business is INR 8.8 billion with a growth of 130% Y-o-Y as it is INR 3.8 billion in the corresponding quarter last year. VoNB margin is at 30.4% vis-a-vis 23.7% in Q1 FY '22, with an improvement of 665 basis points. Growth in VoNB and VoNB margin is fueled by significant new business premium growth and change in product mix with predominantly non-par guaranteed savings segment growth. With our growth targets and product mix shift, we expect to maintain the healthy VoNB growth rate. On operational efficiency, OpEx ratio reduced to 6.6% for the quarter ended 30th June 2022 from 7.2% for the quarter ended June 30, 2021. Our total cost ratio stands at 11.2% for the quarter ended 30th June 2022, vis-a-vis 10.5% for the same quarter last year. With respect to persistency on individual regular premium and limited premium paying policy, 13 month persistency stands at 85.6%. Company has registered a significant improvement in 49th month persistency of 403 basis points with a fair growth in almost all the cohorts. As mentioned in the opening remarks, assets under management stands at INR 2.6 trillion as of June 30, 2022, having growth of 13% compared to the last year same quarter. The company continues efficient use of technology for simplification of [indiscernible] with 99% of individual proposals being submitted digitally. 40% of individual proposals were processed through automated underwriting. To conclude, we are focused on striving ahead against all odds by building a robust value system and foundation that are among of multiple forces, including our investors, customers, distributors, and our own people and other stakeholders. As we move forward, digitalization and automation will remain the core of enjoying customer satisfaction. We continue to aim to a sustainable and profitable growth in the long term. Thank you very much, and we are now happy to take any questions that you may have.
[Operator Instructions] The first question is from the line of from Dhaval Gada from DSP Investment Managers.
Congratulations on strong numbers. I just had a couple of questions. First is relating to the non-par segment. So we've seen very strong growth this quarter. I mean, if you look at like FY '22, we did about 1,700 crores of new business premium already in 1Q, we did about close to 800 crores. I just wanted to understand this product mix shift that we see, do you see it sustaining throughout FY '22? Like do you see far more traction of Smart Platina Plus for the rest of the year as well? Any thoughts, comments around that.
Yes. So this is a product which we found was customer driven is a product which customers want it. Our Platina Assure, Smart Platina Assure, which we launched earlier also was doing very well. And this is a brand where you have income. So that income product we felt that we didn't have in our bouquet and we introduced that. And the customers have taken very good traction. I think going forward also, there will be good traction for this, and therefore, I'm sure that there will be more non-par Platina being sold going forward.
And sir, what's the margin differential between company margin and this non-par segment margin? Like you mentioned in the presentation that a large part of the margin shift that you've seen is driven by product mix.
Obviously higher. We don't want to go into exact numbers. We don't give out exact numbers. But then the idea is that it is definitely very margin accretive. So it is already there.
Understood. And sir, the second question is around the assumption -- operating assumption change. You mentioned in the margin side, the margin was that there have been some negative operating assumption change. If you could just specify what drove that, that would be useful.
See -- we have not made any change in our operating assumptions, [indiscernible] and assumption remains unchanged as we have used in the 31st March 2022. So if we have given this walk from the last June to this June, with March changes are coming, which is part of the number exercise that we always do clearing the segment, this is mainly an account of [indiscernible] that we explained in the March quarter.
Got it. Understood. And sir, the last question is relating to the reserves that we have towards the COVID-19 pandemic. I mean how do you see this evolving at the end of the year? Like do we see write-backs in the fourth quarter, if any or we'll use during the course of the year? How do we intend to utilize these results?
[indiscernible] And we see the crystal ball for this because last 2 years or so, we had made some provisions for COVID related thing. There was one wave, second wave, third wave. So we really don't know how the whole thing is going to pan out. As far as I can see, there is a very strong vaccination program in the country, which is very successful. Our hospitalization and mortality rates have come down hugely because of this pandemic -- I mean, which were attributed to the pandemic. So naturally speaking, if the trend continues, yes, this whole thing could be actually super clear and we could actually write it back. But right now, I can't predict. So with 2 years' experience of the pandemic, we have actually kept the reserve. I think it's a very prudent way of doing things going forward. In any case, I think one of the things that every insurance company will do going forward, and I think every company in the world is going to do is going to keep a slightly higher pandemic reserve than we were doing earlier. So earlier in '20, when the pandemic start, we had a reserve of INR 42 crores or something. I don't remember the exact number right now, but I think it was around INR 42 crores. Today, we know from experience that we need a much higher amount than actually when the pandemic strike. So even with that point of view, I think we need to keep a higher amount as a result. So I think that is how I look at it.
The next question is from the line of Swarnabha Mukherjee from BNS Securities.
Congrats on a great set of numbers. So first question is, again, sir, on the traditional savings products and particularly through the banca channel. So I think banca has generally been heavily skewed towards the unit product and this quarter that has been kind of now that the mix has moved towards this traditional savings. So is this a strategy that we are going to see through the banca channel going ahead also? Or if the sentiment related to the unit comes back, in general, we are hearing that there is some amount of weakness for the unit product in the industry. So if the sentiment comes back, then will the mix revert to the earlier kind of set of numbers? If you could throw some light on that.
Yes. So I think my answer will be what I have been saying quarter after quarter for the last many quarters, that we don't actually determine the consumer behavior. So this is a product which we have launched, which have got acceptance in the public. I think there are circumstances which are encouraging people to go for guaranteed return products. But unit is also growing. So if you can see vis-a-vis last year same quarter, our unit has grown by 42%. It's not a small risk even though there was a base effect. But still even if you bring down the base effect, you will see that there was some growth over what would have been the unit number. So that way, I don't think that we would like to fix the customer preference. And right now, as we see there is a good demand. And there is with this product probably people were probably waiting for from our table, and that is why you see this good -- very good demand. And not only in banca channel, I think you're reading it wrong. We have the same kind of demand in the agencies channel also. So the agency channel is very different from the banca channel just like talking to you. So I don't think there's anything to do with the bank customer or an asset. People are finding it a useful good product, good returns, and that is what I think is helping the product.
Sure, sir. helpful. Sir, in terms of par also with a similar commentary because par for what we have been seeing is that it was slightly debit in the past few quarters, and it has now come back very strongly this quarter. So has there been any new product introduction in par or is there...
Par, I think there was a shift from par to non par. I think in the last couple of years, you would have seen that as our non-par Platina grew in the popularity, I think we had some loss in the par because I think the whole market is probably related. So right now, we have a very good. We have very good products. I think it will be a question of the customer exercising their choice. And our trading of our own agents and all. It does help them to refresh some of the products that are already stable. And sometimes what happen is that you have a hard rate of movement and then agent think that this is something which I -- my customer would like very much, and then it starts clicking. So this is -- I think that is all there is to it. But I -- from what we see from the ground, and we have asked these questions very pointedly to our marketing people, and we find that there is more requirement for par. And going forward, I think this will also grow slightly more, at least, at least from this level, it is going to grow.
Sure sir. Sir, what is the share of the new product in non-par out of the total non-par APE?
30?
30%.
Yes, 30%.
Okay, sir. And a couple of data points, if you could, sir, share, generally, you have shared this in the past call. So the split of group protection under group credit life and group term life as well as for individual protection under [indiscernible] and pure term, if you can give the mix.
I request that we send you the figures because right now, I'll have to actually look for it in the back that I have. So can I send it across to you offline?
Yes, yes. That will help.
The next question is from the line of Adarsh Parasrampuria from CLSA. We'll move to the next question, which is from the line of Sanketh Godha.
Sir, you said that the non-par business is 30.3% is total EPS. Out of the total non par, 30% is contributed by new product lines, that is income front. Right, sir?
Yes.
Yes. And what would be a margin profile of the income plan compared to non-par product. And I just wanted to understand in the past, we have said that the non-par probably is more than 50% [indiscernible] because it's poised the distribution, et cetera, if you do a lot of non par, if the [indiscernible] . So now it is 28.3% of the total decline. But from a full year point of view, do you expect this 28.3 percentage to moderate to like 15 to 20 percentage for the period, sir?
Yes. I don't know, I mean looking at the trends, I think that it should be around this level, say, 25% to 30%, I think that would be my own inclusion on this. And as far as the margins are concerned, I think it's almost -- it's all comparable. It's not very different.
Got it, sir. Sir, somewhere we have result in the current quarter with respect to the annuity business, because it's flat year-on-year, both in APE terms and individual new business terms. So it is more a slowdown in the business or if you think maybe the business?
See, annuity has grown by, I would say year by 3%. But overall, I would see the process is there and overall pension and annuity business has grown by 8 plus. So pension and annuity business has grown by 18%. There is definitely a focus out there. But then like I said, some of this will depend a lot on the customer demand also.
And finally, sir, when is the pension product, it is predominantly unit pension product what you're referring to, because when you look at the other peers, units has struggled for everyone because the market [indiscernible], everyone has struggled to grow the unit business. In our case, it seems to be still decently very good. So sir, just wanted to understand your...
The Unit business depends a lot on the returns that you give to your customers. It doesn't depend on whether you are not trying to actually sell units to people who don't want it. As we sell units to people who understand the product. And therefore, they also understand. However they need to wait for and also sometimes the market fluctuation will be there. And they have options to choose the various funds, including debt, equity and balance. So there are so many kinds of funds that we have. And each of those units -- so we see some shifts going from one to the other or something. But I have to say that right now, our equity portion has grown rather than debt over some -- over the last couple of years or so. Going forward, I don't know how much that will sustain because market has not been very good. But then if people understand market, then maybe this is a good time to invest also.
But this is a unit, how much portion would be unit pension product?
Unit pension, we have to check [indiscernible] pension.
We'll come back to Sanketh.
Yes. So we like from that -- that figure.
And sir, last one, in the non par, which is 30%, it is an income plan right now, given it's a new launch, whether it might become higher contributor in the entire non-par file going ahead, given the traction we'll be seeing, in this particular product and we believe that income plans how generally have a better margin profit than some plan. So 30 percentage, how do you see it to improve going ahead or it could remain at this planning projects?
It was very difficult to predict prospect. If you see the demand, then maybe it will actually grow a little more on that product than on some of the other products that we have. Having said that, all other products also have -- our feel would be a bad. So in spite of the very strong growth, if you look at the growth figures in the segment that it is not only this product which has grown, but this is a new product. And obviously, the latent demand would get satisfied earlier than later. And then after that, it will probably settle into a pattern. I really cannot predict the pattern. But I suppose there will be some more growth in this product going forward.
And sorry, last one, sir. How much of this non par is backed by [indiscernible] and how much is backed by [indiscernible]?
So we have both the products, partially trade bonds and [indiscernible]. And we are doing a hedging depending on the kind of requirement that we have and our own policy of hedging. So we are in line with our policy of hedging.
Next question is from the line of Shyam Srinivasan from Goldman Sachs.
Sir, just first one on the protection business. I think retail protection, we have seen 50%, 60% growth. So this continues to be a slightly outlier to some of the peers who are seeing decline. So if you could just walk us through some of the dynamics around what is driving us market share gains in ROP. Are we just harvesting our own patient -- our own customer pool, or are we able to compete effectively with the external customers as well? So some thoughts or color will be helpful, sir.
Yes. So if you look at our protection growth, we have had a decent protection growth in our agency channel also. And so that if you want to talk about competition, that is competition. You have to go out in the market and get it. That one is there. And our group, if you look at the requirement in India for protection, there is a huge protection gap. So almost everybody needs protection. Now our growth in protection is about 47%. And that growth comes out of selling good products. So we've been saying this earlier also. I think the earlier question used to be, why are the others able to sell more? Why are you not selling as much as the other and things like that? So we always used to say that we have a steady growth because we are near the customers need, and we are fulfilling that needs. I guess the same question is to defer the term with return of premium. And there was a halo around short-term insurance. You can see what has happened to broad-term insurance. There are some things which are not sustainable and something which are probably [indiscernible] on people. So this team is something which is an ideal product for India. And I think we have -- it's a very sweet spot where people understand this product. And people also understand that if they survive, they get something back, okay? These are 2 things which help to spread insurance awareness also in the market. So I think you should see that rather than being outlier, we are a pioneer in doing this [indiscernible] insurance in a sensible manner.
Got it, sir. That's helpful. Sir, second question is on guaranteed. I think you called it out as 23% of total APE, right? So it seems to be relative to your own past, that number has jumped up quite a bit quarter-on-quarter, even year-on-year, right? So what is the comfort level in the sense that you talked about your hedging, you said that it's under as per policy. But we can't write unlimited number of such policies, maybe there is unlimited amount, I don't know.
[indiscernible] So that is the main thing. So see, we are very comfortable as far as our position right now is, okay? And as far as we are able to do that and customer demand is there, I think we'll continue with this approach. First, of course, the recalibration will come in terms of pricing. So what happens is that because of the interest rates grow, the market expectation will grow when you reprice the product, then it depends on how much you reprice rate, whether you are in line with the market, whether more than the market, whether you are less than the market in repricing. So that will always determine what kind of growth count. So these things will be determined by the divide, what the customer needs and what we can sustainably do going forward.
Sir, last question on this is a bit technical. So average duration on this portfolio, you look at your presentation seems to suggest a very 20-plus years kind of duration. Is that right, or you have a limited pay, which actually makes the average duration on the portfolio lower?
This is a limited pay. So [ right now business in terms of the product it's fair to say that the ] income plan and 7 papers [indiscernible] plan. So we will continue [indiscernible] lower than that.
[Operator Instructions] The next question is from the line of Adarsh Parasrampuria from CLSA.
Sir, I have a follow-up on the previous question. Is the constraint on what you can say, given that you are seeing demand will be on hedging? So sir, the question was a follow-up on the previous one. So your -- you've had a spectacular result, a lot of it driven by the mix change. The only constraint are always for every player is the hedging. And since you believe that a lot of these momentum that you are seeing can continue, it will really help all of us, if you could, in a little bit more detail, explain your hedging policy. And because it will make your margin outlook a lot more sustainable if there is a very effective hedging policy on this.
Sure. So what happens is -- what are you hedging against? So we are hedging against change in the interest rate, okay? So what is the period that you need to hedge for? The period up to which you are uncertain about the interest, okay? So [indiscernible] will come at a future point of time, and at that time, you don't know what is the return you're going to get, and that is what you are hedging. So seeing there is visibility, let's say, in the next year, 2 years or whatever, at any given point of time, the kind of visibility that we have, we would be comfortably in investing directly for that portfolio. And anything beyond that, what will happen is that we'll have to wait and watch what are the inflows and what is the rate at that point of time. So then instead of waiting and watching, we hedge that. So that is exactly what we are doing right now. I don't know if that gives you the clarity that you're looking for.
So what we are saying is other which, apart from future portfolios, 3 onwards, whatever are the expected premium inflows, majority of the inflows are fixed. We will not be able to share subjective, but majority includes [indiscernible] and that is as par Board approved policy.
Sir, if you could just throw some light on what's the premium paying terms in most of these policies, like what you've sold this 800 crores, approximately a ballpark number of what the premium paying term is, are these like 5, 7 years only? Or are these mostly longer product?
7 to 10 years. So the product is 7, 8, 10.
Got it, sir. Sir, now coming to the second question, obviously, if you believe you can deliver similar momentum or in the same vicinity. Maybe about 6 months back, you have guided to 30% margin over a 3-year period, and we have like fifth quarter or just starting FY '24 and your margins are north of 30%. And if you sustain this product mix, then obviously, the margins look sustainable. So I just wanted to understand how you are looking at it, how the Board is looking at it because this is a phenomenal jump in margins. And just wanted to understand how sustainable it looks to you all.
The margin is not something we are chasing per se. We are looking at the bigger picture. We need to have the value of the business go up. We need to have very easy growth. So that is what will show that we are growing as a company, and we are doing -- going in the right direction. As margin is one of those factors, so margin -- I will not be stuck on a particular number for the margin because going forward, if I sell more of some of the other products, for example, units, if I sell slightly more of units, then the margins can slightly come down from this level also. But then the value that I deliver will continue to grow because we are looking at good growth going forward, upwards of 25% growth in premiums. And I think that is something which we think as we see it now. We have done extremely well the last couple of years, given that there was a pandemic and we had virtually 0 business in some of the -- 0 at least for weeks, we had some much lesser business. So we think that we will be able to sustain that. Nothing is unlimited. But if you look at the potential that you have in India, it's humongous, the potential that you have for insurance issues almost 82% of the people are not covered to the extent that is required, the protection gap is 82%. And if you look at the coverage of insurance to GDP, 3.2%. So the scope is vast. So it literally actually, the whole business can grow to anything from here.
The next question is from the line of Avinash Singh from Emkay Global.
A couple of questions. Firstly, on your accounting profit. I mean coming from that last year's base when there was kind of a huge COVID delta wave last year. The profit accounting terms and of course, not a key number, but looks a bit muted. I mean, is that largely an impact of higher earning business strain because of the same product mix? And...
No, absolutely. You got it on the button.
Okay. Okay. And the second, in terms of your distribution, I mean, of course, you have typically a very gradual branch [indiscernible] kind of sustainable. Now we have close to 1,000 branches. And of course, your largest bank distributor is omnipresent almost across India. So now I mean in terms of branch addition now you are done, are you going to stop or your own branch addition will also continue at the same pace you have been doing for the last couple of years?
So we have been growing at a very -- what you call it, sensible pace, I should say. If you look at the potential that is available at any areas which we have not covered earlier, where we think there is good potential or any area that has got very good potential and we have an adequate staff or representation out there. So that is -- those are the places that we grow. And I think we will continue to look at it in the same fashion. We have never had to open branches at that closer. So we do have a very good approach to the whole thing. We do a very scientific analysis of the kind of business that is available and then we grow that. So the branch network also, I think, at least as of now into the near term or even the midterm, foreseeable future, I don't think we are going to actually stop expansion. So especially, as you can see the numbers are not huge. So we probably had about 30, 40 branches every year, and that is, I think, very, very sustainable.
And one data keeping, I mean what sort of run rate currently your individual term is seeing on Yono platform? I mean is some momentum continuing or has sort of for the moment come to hold?
Yes, there is a good traction on the Yono platform. And this year, we have taken a good target to start the Yono ILS also. So that's something which we will continue to [indiscernible].
Sir, what's the current run rate on protection side? I mean retail protection on Yono platform?
Currently, all over Yono, there will be starting protection.
Yes. Right now, the only protection on Yono app, we have 1 product that is the protection, pure protection.
Yes. What is the premium [indiscernible], any sort of number?
Premium, yes. Moment it is very small, but we are eyeing for a big number, along with other products which is introduced in this platform. So in this year, we are expecting to jump as far as the Yono platform is concerned.
[Operator Instructions] Next question is from the line of Neeraj Toshniwal from UBS.
Just wanted to know, last year, in August, the repricing of both nonprofit and the term insurance plan and we told that another year won't be changing anything especially for the non-par protection. Where are we in terms of repricing of the products now, we already have launched a new variant of the [indiscernible]. Wanted your thoughts on are we looking to maintain our spreads there with the rising interest rates and the LPDs going up, how we are thinking about it?
So like I said, for the non-par savings products, our pricing will depend on the market conditions or the interest rate. So going forward also, we keep a look at the interest rate movement and we don't want to be getting far away from the market.
Just to add that is that we see a very active pricing for all our [indiscernible] particularly in view of the interest rate movement and our [indiscernible] which we're getting the forwarding element on the side. Accordingly, we are actively repricing looking to the market scenario. And our objective is to optimize the whereabout of the customer and of us. Our intention is to maintain the spread that we're getting to today. So as long as we're able to maintain this expense and able to hedge this investor, I think we'll continue to keep doing that. So difficult to comment that when we do that, we have continuous pricing so one by one, so as and when require we repriced.
Okay. And more color on the protection will be helpful as to understand, because now the whole industry is now doing similar to what you are doing as competition really increased or it doesn't affect us because our [indiscernible].
I don't think it affects us, but because we are expanding the market, we are going and selling. These are products which people, new people who are not covered by insurance or buying. And if they see value in the product, they will continue to buy that. And we will keep looking at the pricing to make sure that it is sustainable for us, and it is viable for the customer.
Got it. And last question on unit, I want to understand do we have done well in terms of Y-o-Y growth when it comes from newbies. So where do we think the unit kind of settling for the full year, given overall industry struggling, we have done B2B better, but still it will be helpful because...
Yes. I think unit should be somewhere around 55% around. So it could be, say, somewhere around 50% to 60%. But I really -- my own feeling is that it will certainly come around to 55% to 60%.
The next question is from the line of Madhukar Ladha from Elara Capital.
Congratulations on an exceptional set of numbers. I have a few questions -- sorry, I joined in a little late on the call, so I may have missed this if it's only discussed. First, do you have some sort of limit for how much non par you could write? I understand that there is a lot of demand. But internally, have you sort of kept the limit for yourself that of my entire product mix, this is the extent to which I'm okay writing non par? Second, there is a change in assumptions which has impacted margins by about 50 basis points. What is that? Third, on the individual annuity business, can you -- so my calculation suggests that we've done about 60 crores of there. Can you just verify that? And finally, the next 2 quarters are -- were very strong sort of last year. So now the base is very high for us going into the balance part of the year. And we are hearing some talk about rural slowdown. Maybe you can give us some context, some commentary around the demand environment and how confident you are of growing on this base for the balance part of the year?
Yes. So first, let me talk about your individual annuity as you have the correct figure. I think it's about 51 crores on individual annuity. And as far as the limit to the non par is concerned, we don't have an internal limit. But my own sense is that we would be around this kind of level maybe 25% to 30% of our portfolio because I do see the other parts also growing. So all of it is growing. When you come back to growth, then yes, as of now, we -- obviously, there's a base effect to all these numbers. So I don't think we'll continue to grow at 87% or something in some of the things. But our target is about 25-plus percent and then after that price limit. So 25% is what we will aim to have and my sense is that we should get there. Yes, coming to the assumptions, I asked the Prithesh to speak.
Yes. There is no change in assumption in this quarter. In fact, as you have seen what based assumption change that we have done in a month of March of the year. If you're showing this walk from December to -- sorry, June to this June, this impact is coming from, but there is no change in assumption. And the changes that we have done in the March is mainly on account of insurance, I think some of the things and nothing else.
Got it. Understood. So 25% on last year's base...
So that is what we are targeting here for the full year.
The next question is from the line of Deepika Mundra from JPMorgan.
Congratulations on a great quarter. So sir, just want to understand as the product revenue margin, is there any product where the margin is changing, particularly on non par? Are you seeing significant benefit of higher spreads, which is helping the margin other than just the mix increasing?
So like we said, we'll try to optimize the prices so that we also have a sustainable product and the customer also gets value. So I don't see a sudden changes and that kind of growth.
As there no further questions in the participants, I now hand the conference over to Mr. Mahesh Sharma for his closing comments.
Yes. So I'd like to say that thank you so much for supporting us, and we hope to continue to deliver all those expectations that we have from all of you and from our customers. And going forward in this year, if we have a COVID free year and if there are no other major disruptions, which I sincerely hope there wouldn't be, I think we'll be able to come up with a good performance by the end of the year. Once again, I thank all the stakeholders, all our friends here for -- on the conference for listening patiently to us. Have a great evening and wish you a very safe and healthy future. Thank you.
Thank you. On behalf of SBI Life Insurance Company Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.