- SBI Life reported a 22.1% rise in net profit to Rs 725 crore in Q1 FY27
- Net premium income increased 17% to Rs 20,078 crore year-on-year
- New business premium grew 22.6% to Rs 8,910 crore in the quarter
SBI Life Insurance reported better-than-expected earnings for the quarter ended June, with net profit rising 22% year-on-year, supported by strong growth in new business premium and annual premium equivalent (APE).
The insurer posted a net profit of Rs 725 crore for the first quarter of fiscal 2027, surpassing the Bloomberg estimate of Rs 696 crore. Net profit increased 22.1% from Rs 594 crore in the corresponding quarter last year.
Net premium income rose 17% year-on-year to Rs 20,078 crore during the quarter.
The company's solvency ratio improved to 1.96 at the end of the June quarter from 1.90 in the previous quarter, remaining well above the regulatory requirement.
SBI Life reported robust growth in its core operating metrics. New business premium increased 22.6% year-on-year to Rs 8,910 crore from Rs 7,270 crore, while Annual Premium Equivalent (APE) rose 35.5% to Rs 5,380 crore from Rs 3,970 crore.
Value of New Business (VNB), a key measure of profitability for life insurers, grew 29.4% year-on-year to Rs 1,410 crore from Rs 1,090 crore.
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However, the VNB margin moderated by 120 basis points to 26.2% from 27.4% in the year-ago quarter, indicating a slight decline in profitability per unit of new business despite higher volumes.
On the persistency front, the 13th-month persistency ratio improved by 60 basis points year-on-year to 87.7% from 87.1%, reflecting better policy retention in the early stages. However, the 61st-month persistency ratio declined to 58.4% from 63.6%.
The insurer's distribution mix remained diversified during the quarter. The bancassurance channel contributed 47% of APE, followed by the agency channel at 25%, while other distribution channels accounted for the remaining 28%.
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