SBI Life Insurance reported a 22% YoY rise in net profit to ₹720 crore for Q1 FY27, supported by strong premium growth.
New business premium increased 23%, while value of new business rose 29% despite a decline in margins.
The insurer also recorded higher embedded value, assets under management and improved persistency ratios during the quarter.
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.
4 July 2026
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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.
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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.
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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.
