India’s SBI Life profit dips as operating expenses rise

India’s SBI Life Insurance reported a 1% drop in fourth-quarter profit on Wednesday as higher commissions and a jump in operating expenses outweighed renewal premium growth.

The insurer reported a net profit of 8.05 billion rupees ($85.85 million) for the three months ended March 31, down from 8.14 billion rupees a year earlier.

Net premium income rose 16% to 276.84 billion rupees, driven by growth in renewal premiums. One-time premiums increased 37%, while renewal premiums rose about 14%. First-year premiums from new policies rose a modest 5%.

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Net commissions paid rose 10%, while operating expenses increased nearly 35% to 16.68 billion rupees.

Analysts had expected growth to moderate during the quarter as volatile equity markets, triggered by the Middle East conflict, weighed on demand for market-linked insurance products, to which the company has a relatively higher exposure.