SBI Life Net Profit Up by 14% in June Quarter

Mumbai, July 24 – SBI Life Insurance Company Ltd (NSE: SBILIFE | BSE: 540719) reported a 14% year-on-year (YoY) rise in net profit to ₹5.9 billion for the first quarter of FY26. The increase in profits was largely driven by a strong growth in renewal premiums and improved persistency metrics, the company said. The company also reported a 20% increase in IEV (Indian Embedded Value) that stood at ₹742.6 billion as of June 30, 2025. IEV represents the consolidated value of shareholders’ interest in a life insurance business and is commonly used to assess the worth of such companies in India.

The company’s share closed at ₹1817 (0.41% higher than the previous day’s closing price). The stock traded in red throughout the day, and there was a massive spike at the end of the trading session. The low-high range was between ₹1,778.70 and ₹1,822.50. The stock experienced heavy trading volumes in the afternoon (total traded shares 9.2 lakh shares).

Key Financial Highlights

The company reported a 14% year-over-year increase in net profit to ₹5.9 billion for Q1 FY26, driven by strong premium inflows and improved operating efficiency. Gross Written Premium stood at ₹178.1 billion, up 14%, driven by a 24% increase in renewal premium and a 3% growth in new business premium. Assets Under Management rose 15% to ₹4,758.1 billion. Indian Embedded Value expanded 20% to ₹742.6 billion, while Value of New Business grew 12% to ₹10.9 billion with a VoNB margin of 27.4%.

Segment Performance and Market Metrics

• Individual New Business Premium grew 4% YoY to ₹49.4 billion.
• Individual New Business Sum Assured surged 73% YoY to ₹666.3 billion.
• Annualized Premium Equivalent (APE) rose 9% to ₹39.7 billion.
• Market Share: SBI Life maintained its private market leadership with a 22.3% share in Individual Rated Premium (IRP) and 25% in Individual NBP.

Product & Channel Mix

• APE Product Mix (Q1FY26): ULIP 57%, Non-Par 38%, Par 5%.
• APE Channel Mix (Q1FY26): Bancassurance 58%, Agency 27%, Others 15%.

Persistency & Efficiency Ratios

The company reported strong persistency with 13th and 61st month ratios at 87.12% and 62.80%, respectively. Cost ratios remained stable, and the solvency ratio stood healthy at 1.96x, slightly down from 2.01x last year.

Management Commentary

Amit Jhingran, MD & CEO, stated:

“In Q1 FY26, we achieved a favourable product mix shift towards protection and guaranteed non-par savings. The strong growth in renewal premium and persistency ratios reflect our deepening customer relationships and high business quality.”

Strategic Updates

• Digital Adoption: 99.3% of individual applications were submitted digitally; 98% of renewals were collected via digital mode.
• Distribution: Network expanded to 1,146 offices with over 323,000 trained insurance professionals.
• Financial Strength: Net worth stood at ₹178.3 billion, with zero debt and a solvency ratio well above regulatory requirements.

Company Overview

SBI Life Insurance Company Ltd, a joint venture between State Bank of India and BNP Paribas Cardif, is one of India’s leading life insurers. The company offers a comprehensive portfolio of protection, savings, annuity, and group insurance products. It is listed on NSE and BSE with a paid-up capital of ₹10 billion and total assets under management of ₹4.76 trillion as of June 30, 2025.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/55f8c8ec-0db7-40d1-ba77-5edaad2e2e6c.pdf

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