SBI Life Insurance on Friday reported a 22% year-on-year (YoY) rise in profit for the June quarter, helped by higher new business premium, stronger renewal collections and growth in value of new business. The company’s profit after tax rose to Rs 720 crore for the quarter ended June 2026, compared with Rs 590 crore in the same quarter last year. Profit before tax increased to Rs 750 crore from Rs 610 crore.
Gross written premium rose 20% YoY to Rs 21,290 crore from Rs 17,810 crore. New business premium grew 23% to Rs 8,910 crore, while renewal premium rose 17% to Rs 12,380 crore. Individual new business premium increased 14% to Rs 5,610 crore from Rs 4,940 crore. Individual rated premium also grew 14% to Rs 3,970 crore.
Annualised premium equivalent, a key measure of new business growth for life insurers, rose 36% to Rs 5,380 crore from Rs 3,970 crore. SBI Life said it retained private market leadership in individual new business premium and individual rated premium, with market shares of 24.9% and 22.2%, respectively.
MD and CEO Amit Jhingran said SBI Life continued its growth momentum into the first quarter of FY27, supported by a favourable product mix. "All product segments recorded growth on an Individual Rated Premium basis, and all key distribution channels achieved double-digit expansion," Jhingran said.
He said the higher contribution from protection solutions and guaranteed non-par savings products reflected changing customer preferences and the company’s strategic focus.
Value of new business rises
SBI Life's value of new business rose 29% YoY to Rs 1,410 crore from Rs 1,090 crore. Value of new business margin stood at 26.2%, compared with 27.4% a year earlier. The margin decline came even as the company delivered strong growth in new business value. The investor presentation showed that higher business volume added Rs 390 crore to value of new business, while changes in business mix, operating assumptions and GST impact weighed on margins.
Indian embedded value rose 15% YoY to Rs 85,290 crore from Rs 74,260 crore. Embedded value per share stood at Rs 850.2.
Assets under management grew 10% to Rs 5.25 lakh crore from Rs 4.76 lakh crore a year earlier. The debt-equity mix stood at 60:40, and about 94% of debt investments were in AAA and sovereign instruments.
Net worth increased 13% YoY to Rs 20,110 crore from Rs 17,830 crore. The solvency ratio stood at 1.96, above the regulatory requirement of 1.50.
Persistency improves, costs rise
The 13th-month persistency ratio improved to 87.7% from 87.1% a year earlier. The 49th-month persistency ratio rose to 69.1% from 68.4%. The 25th-month and 37th-month ratios also improved to 78.2% and 72.4%, respectively. The 61st-month persistency ratio, however, fell to 58.4% from 63.6%.
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The operating expense ratio rose to 7.7% from 6.3% a year earlier, while the commission ratio stayed flat at 4.4%. Total cost ratio increased to 12% from 10.8%.
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