New Delhi, July 24 -- SBI Life Insurance Co.'s cost ratios increased in the June quarter as India's tax exemption on individual life policies and new labour rules raised expenses. Meanwhile, profit rose by 22%.

The operating cost ratio went up to 7.7% from 6.3% a year earlier. The total cost ratio also increased to 12% from 10.8%, according to the company. The GST exemption alone cost the insurer around Rs.230 crore in the quarter, reducing its value of new business margin by 1.1 percentage points. The margin stood at 26.2% against 27.4% a year earlier.

Profit after tax reached Rs.720 crore. New business premium grew by 23% to Rs.8,910 crore, helped by a large group protection contract that raised group protection annualized premium equ...