SBI Life Insurance on Tuesday said that its has made an additional provision of Rs 60 crore over and above policy level liabilities on account of the Covid19 pandemic.

The life insurer which declared its financial result on Tuesday, said that it has assessed the overall impact of the pandemic on its business and financials, including valuation of assets, policy liabilities and solvency for the year ended March 31, 2020.

“Based on the evaluation, the company has made additional reserves amounting to Rs 60 crore for the Covid-19 pandemic over and above policy level liabilities calculated based on prescribed IRDAI regulations and the same have been provided for in the actuarial liability as of March 31, 2020,” said the insurer in a statement to the bourses.

The insurer has earned a net profit of Rs 1,422.17 crore in 2019-20 against Rs 1,326.80 crore in 2018-19.

New business premium grew 20 per cent to Rs 16,952 crore from Rs 13,792 crore in the year-ago period. The company’s solvency ratio was 1.95 as on March 31, 2020 against the regulatory requirement of 1.50.

SBI Life’s assets under management grew 14 per cent to Rs 1,60,363 crore as on March 31, 2020 from Rs 1,41,024 crore as on March 31, 2019, with the debt-equity mix of 79:21. Almost 90 per cent of the debt investments are in AAA and sovereign instruments, the life insurer said.

Life insurers are looking to step up their provisions because of market volatility and to protect against any major spike in death claims.