SBI Life Q1 Results Show Higher Profit, Premium Growth And VNB Gains

SBI Life Insurance Company reported strong financial performance for the first quarter of fiscal year 2027, with net profit rising 22.1 per cent year-on-year, supported by growth in new business premiums, annual premium equivalent (APE), and value of new business (VNB). The insurer posted a net profit of ₹725 crore for the quarter ended June, beating the Bloomberg estimate of ₹696 crore. In the same period last year, the company had recorded a profit of ₹594 crore.

The company’s net premium income increased 17 per cent year-on-year to ₹20,078 crore during the quarter, reflecting steady growth in its insurance operations. SBI Life also reported improvement in its solvency ratio, which stood at 1.96 at the end of the June quarter compared with 1.90 in the previous quarter. The ratio remained comfortably above the regulatory requirement, indicating financial strength and stability.

SBI Life’s core business indicators showed significant growth during the quarter. New business premium increased 22.6 per cent to ₹8,910 crore from ₹7,270 crore in the year-ago period. Annual Premium Equivalent (APE), an important measure of new business performance in the insurance sector, grew 35.5 per cent year-on-year to ₹5,380 crore compared with ₹3,970 crore previously.

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The insurer’s Value of New Business (VNB), which measures profitability from newly issued policies, rose 29.4 per cent to ₹1,410 crore from ₹1,090 crore in the corresponding quarter. However, the VNB margin declined by 120 basis points to 26.2 per cent from 27.4 per cent a year earlier, indicating a slight moderation in profitability per unit of new business despite higher overall growth.

SBI Life also reported mixed trends in policy retention during the quarter. The 13th-month persistency ratio improved to 87.7 per cent from 87.1 per cent last year, showing better retention of policies during the early period. However, the 61st-month persistency ratio declined to 58.4 per cent from 63.6 per cent, indicating pressure on long-term policy retention.

The company maintained a diversified distribution network during the quarter, with the bancassurance channel contributing 47 per cent of APE, followed by the agency channel at 25 per cent. Other distribution channels accounted for the remaining 28 per cent. SBI Life’s quarterly performance highlights continued expansion in new business, while the company focuses on maintaining profitability and improving customer retention.

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