SBI Life Q1 Profit Rises 22% YoY to ₹720 Cr as New Business Premium Surges

SBI Life Insurance reported a 22% year-on-year (YoY) rise in profit after tax to ₹720 crore for the April-June quarter (Q1 FY27), driven by higher new business premium, strong renewal collections and growth in value of new business.

The insurer's profit before tax increased to ₹750 crore from ₹610 crore in the corresponding quarter last year. Gross written premium rose 20% YoY to ₹21,290 crore, while new business premium climbed 23% to ₹8,910 crore. Renewal premium also grew 17% to ₹12,380 crore.

The company said it continued to retain its leadership among private insurers in individual new business premium and individual rated premium, with market shares of 24.9% and 22.2%, respectively.

New Business Growth Remains Strong

Individual new business premium increased 14% YoY to ₹5,610 crore, while individual rated premium also grew 14% to ₹3,970 crore.

Annualised Premium Equivalent (APE), a key measure of new business growth for life insurers, rose 36% to ₹5,380 crore during the quarter.

SBI Life's Value of New Business (VNB) increased 29% to ₹1,410 crore. However, the VNB margin moderated to 26.2% from 27.4% a year earlier. According to the company's investor presentation, higher business volumes contributed positively to VNB, while changes in business mix, operating assumptions and the impact of GST weighed on margins.

Embedded Value, Assets Under Management Grow

The insurer's embedded value, a key measure of an insurer's long-term worth, rose 15% YoY to ₹85,290 crore, with embedded value per share increasing to ₹850.2.

Assets under management (AUM) grew 10% to ₹5.25 lakh crore from ₹4.76 lakh crore a year earlier. The company said around 94% of its debt investments remained invested in AAA-rated and sovereign securities, while the debt-equity allocation stood at 60:40.

Net worth increased 13% YoY to ₹20,110 crore, while the solvency ratio remained at 1.96, comfortably above the regulatory requirement of 1.50.

Persistency Improves; Management Remains Positive

SBI Life reported improvement across most persistency ratios, indicating stronger customer retention. The 13th-month persistency ratio improved to 87.7%, while the 49th-month persistency ratio rose to 69.1%. The 25th-month and 37th-month ratios also improved, although the 61st-month persistency ratio declined to 58.4%.

The operating expense ratio increased to 7.7% from 6.3% a year ago, while the commission ratio remained unchanged at 4.4%. As a result, the total cost ratio rose to 12% from 10.8%.

Commenting on the performance, Managing Director and CEO Amit Jhingran said the company "continued its growth trajectory from FY2026 into the first quarter of FY2027", supported by a 14% increase in Individual Rated Premium and a favourable product mix.

He added that growth in renewal premium and improvements in persistency ratios reflected stronger customer relationships, while the company's brand, diversified distribution network and technology-led capabilities position it well to meet growing demand for protection, savings and retirement products.