SBI Life Insurance reported new business APE of Rs 6,370 crore (in line), growing 7% YoY. For H1 FY27, annual premium equivalent grew 18% YoY. Absolute VNB grew 12% YoY to Rs 1,860 crore (in line), reflecting a VNB margin of 29.2% for the quarter vs 27.9% in Q2 FY26 (vs estimate of 27.5%. For H1 FY27, VNB grew 19% YoY, with a VNB margin of 27.9% (27.8% in H1 FY26).
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Motilal Oswal Report
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Following SBI Life Insurance Company Ltd.'s September-quarter results, Motilal Oswal has retained its annual premium equivalent estimates but has increased its VNB margin by 50 basis point in FY27, considering the Q2 FY27 performance. However, the brokerage has maintained its EV estimates with operating return on embedded value at ~18% for FY27/28.
Hence Motilal Oswal reiterated its Buy rating with a revised target price of Rs 2,100, based on 1.9 times FY28E price/embedded value).
According to the brokerage SBI Life's Q2 VNB margin benefited from the favorable product mix, rising rider attachment rates, and strong business volumes.
Going forward, steady traction in non-linked products and resilient protection demand are expected to drive VNB margins at the upper end of the 26-28% guidance band.
Continued investments in agency and digital channels are likely to drive overall growth, supported by a gradual growth recovery in the bancassurance channel.
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SBI Life Q2 FY27 Results Highlights
SBI Life Insurance reported new business APE of Rs 6,370 crore (in line), growing 7% YoY.
For H1 FY27, annual premium equivalent grew 18% YoY.
Absolute VNB grew 12% YoY to Rs 1,860 crore (in line), reflecting a VNB margin of 29.2% for the quarter vs 27.9% in Q2 FY26 (vs estimate of 27.5%. For H1 FY27, VNB grew 19% YoY, with a VNB margin of 27.9% (27.8% in H1 FY26).
SBI Life reported 11% YoY growth in shareholder PAT to Rs 550 crore (10% miss). For H1 FY27, PAT grew 17% YoY. EV at the end of H1 FY27 stood at Rs 87,350 crore, rising 15% YoY (Rs 80,790 crore at the end of FY26).
Agency channel growth is expected to normalise over the next couple of months while supporting the overall FY27 growth target of 14–15%.
Excluding the GST impact, VNB margin would have been 28.8% in H1 FY27 and 30% in Q2 FY27. The company has maintained FY27 guidance for VNB margin at 26–28%.
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