SBI Life March Quarter Profit Flat; 2024-25 Bottomline Up 27% Despite Weak Investment Income

SBI Life Insurance Co. Ltd. posted a marginal 0.3% rise in net profit for the quarter ended March at ₹8.14 billion, as a decline in premium income and a sharp fall in investment income weighed on the bottomline. The muted growth comes against a 5% fall in net premium income to ₹238.61 billion, largely due to a 42% decline in single premium to ₹44.63 billion.

Renewal premium helped offset the weakness, rising 13% to ₹146.80 billion, while first-year premium climbed 7% to ₹48.59 billion.

The quarterly performance came in below expectations, with Motilal Oswal Financial Services estimating net profit at ₹8.6 billion and premium income at ₹253.40 billion.

SBI Life’s investment performance dragged earnings sharply; net income from investments turned negative at ₹10.41 billion versus a ₹108.12 billion gain in the year-ago quarter. As a result, total income dropped 36% on year to ₹241.69 billion, while total expenditure was down 37% to ₹226.06 billion, aided by a 60% drop in change in actuarial liability to ₹77.06 billion.

As of March 31, the insurer’s solvency ratio stood at 1.96. Persistency improved, with the 13th- and 61st-month ratios at 86.64% and 61.51%, respectively, compared with 85.76% and 57.81% a year ago.

For 2024-25, SBI Life reported a 27% jump in net profit to ₹24.13 billion, while gross written premium rose 4% to ₹849.8 billion. Net premium income for the year was also up 4% at ₹840.60 billion. New business premium fell 7% to ₹355.8 billion, but renewal premium increased 14% to ₹494.1 billion. The value of new business rose 7% to ₹59.5 billion, with a marginal dip in margin to 27.8% from 28.1% in 2023-24.

Assets under management stood at ₹4.48 trillion at the end of March, up 15% on year.