Investment Losses Drag SBI Life’s July-September Profit Despite Strong Premium Growth

SBI Life Insurance Co. Ltd. reported a drop in profit for the September quarter as investment losses across multiple segments offset robust growth in premium income and a sharp fall in actuarial liabilities.

Net profit fell 6.6% on year to ₹4.95 billion, while sequentially it was down 16.8%. The insurer’s results were announced just before market close. Shares ended 0.7% lower at ₹1,839.80 on the National Stock Exchange.

The company reported investment losses of ₹20.55 billion in the quarter, compared with income of ₹197.53 billion a year ago. The linked individual life segment posted a loss of ₹53.95 billion, while the linked pension segment recorded a loss of ₹3.53 billion.

Net premium income surged nearly 23% on year and 45% on quarter to ₹248.48 billion. Renewal premiums rose 19% to ₹140.03 billion, while single premium income jumped over 50% to ₹57.92 billion.

A 74% decline in change in actuarial liability to ₹60.39 billion helped limit the hit to the bottom line. Assets under management increased 10% on year to ₹4.81 trillion as of September 30, with a 60:40 debt-equity mix. Around 95% of debt investments are in sovereign and ‘AAA’-rated instruments.

The solvency ratio stood at 1.94 times against the regulatory requirement of 1.50, while net worth rose 13% to ₹182.9 billion. The 13-month persistency ratio improved to 85.37% from 84.24% a quarter earlier. The bancassurance channel accounted for 57% of total business, agency for 29%, and others for 14%.

For the first half of 2025-2026, new business premiums rose 17% on year to ₹183.5 billion. Gross written premium climbed 19% to ₹429 billion, driven by a 24% increase in single premium and 21% in renewal premium. Value of new business rose 14% to ₹27.5 billion, and new business margin improved to 27.8% from 26.8% a year ago.

Managing Director and CEO Amit Jhingran said recent government reforms in goods and services tax will aid long-term sectoral growth, calling them “a key step toward improving affordability, accessibility and financial security for all.”