SBI Life June Quarter Profit Rises 14% on Investment Gains

SBI Life Insurance Co. Ltd. reported a 14.4% year-on-year rise in net profit to ₹5.94 billion for the April–June quarter, supported by higher investment income and growth in net premium income. Sequentially, profit fell 26.9% due to sharp declines in both net and gross premium income.

Net income from investments rose nearly 12% on year to ₹215.25 billion, compared with a net loss of ₹10.41 billion in the January–March quarter. Net premium income increased 14% on year to ₹171.79 billion, but declined 28% sequentially.

Among key segments:

• First-year premium rose to ₹35.39 billion, up from ₹31.46 billion a year ago, but down from ₹48.59 billion in January–March.
• Renewal premium increased to ₹105.46 billion from ₹85.39 billion, though lower than ₹146.80 billion in the previous quarter.
• Single premium dropped to ₹37.28 billion, from ₹38.87 billion a year ago and ₹44.63 billion in the prior quarter.

Individual new business premium rose 4% on year to ₹49.4 billion, while total new business premium was up 3% on year at ₹72.7 billion. Protection new business premium stood at ₹9.8 billion. Annualised premium equivalent (APE) rose 9% on year to ₹39.7 billion.

The 13th month persistency ratio was 84.23%, slightly lower than 86.64% in the previous quarter. The solvency ratio stood at 1.96 as of June 30, well above the regulatory minimum of 1.50.

Assets under management grew 15% on year to ₹4.76 trillion. Gross written premium rose 14% to ₹178.1 billion, supported by a 12% rise in new business regular premium and 24% growth in renewal premium.

The value of new business rose 12% on year to ₹10.9 billion, with margins improving to 27.4% from 26.8%. Bancassurance remained the dominant distribution channel, contributing 58% to APE, followed by agency at 27%.

The total cost ratio for the quarter stood at 10.8%, up 3 basis points on year. The commission ratio was stable at 4.4%, while the operating expense ratio edged up to 6.3% from 6.1%. The surrender ratio declined to 5.6%, from 6.3% a year earlier.

The board approved the re-appointment of Amit Jhingran as Managing Director and CEO from October 1 to January 31, 2027.