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    SBI Life Insurance Company Q1 FY27 earnings call

    SBILIFE
    Financial Services·24 Jul 2026
    Management Summary

    SBI Life delivered a strong Q1 FY27, with robust growth in new business premium, profit after tax, and value of new business, driven by a favorable product mix shift and strong distribution channels. While margins were impacted by a lumpy group business, management expects normalization. The company maintains a strong solvency position and continues to focus on profitable and sustainable growth.

    Highlights

    5

    • New business premium (NBP) grew 23% to INR 89.1 billion, with individual rated new business premium (IRP) growing 14% to INR 39.7 billion, outpacing the industry CAGR of 13%.

    • Profit after tax (PAT) increased by 22% to INR 7.2 billion, supported by favorable market conditions and investment performance.

    • Value of new business (VoNB) saw a 29% growth, reaching INR 14.1 billion, driven by volume growth and a favorable shift in product mix.

    • The company maintained a strong solvency ratio of 1.96, well above the regulatory requirement of 1.5.

    • Pure protection category on an Individual APE basis registered a strong growth of 41%, reflecting increasing awareness and demand for financial protection.

    Concerns

    3

    • VoNB margin stood at 26.2%, at the lower end of the guidance, primarily due to a higher share of lumpy group business in the overall APE mix during the quarter.

    • Opex ratio increased to 7.7% from 6.3% in the corresponding period last year, and total cost ratio rose to 12% from 10.8%, partly attributed to a GST impact of INR 2.3 billion and the initial impact of the labor code.

    • The 61st month persistency declined compared to last year, attributed to the 'COVID cohort' moving through, though normalization is expected by Q3.

    Key financials

    Single quarter

    14 metrics
    1. 01New Business Premium$89.1B+23%YoY
    2. 02Individual Rated Premium$39.7B+14.0%YoY
    3. 03Gross Written Premium$212.9B+20%YoY
    4. 04Profit After Tax$7.2B+22%YoY
    5. 05Value of New Business$14.1B+29.0%YoY

    Capital allocation

    1
    high confidence
    CategoryHeadline
    M&A

    J&K Bank

    Other · announced

    Guidance & targets

    5
    CategoryTargetPriority
    Volume
    Individual Rated Premium (IRP) growth
    14-15%
    		High
    Margin
    VoNB margin
    26-28%
    		High
    Product Mix
    Non-ULIP contribution to product mix
    this kind of product mix only
    		Medium
    Persistency
    61st month persistency
    back to normal
    		High
    Product Launch
    Regular pay deferred annuity plan launch
    launched
    		High

    What to watch in Q2 FY27

    5

    VNB margin normalization

    Next quarter
    Current26.2% (lower end of guidance)
    TargetTowards upper end of 26-28% band

    Why it matters

    Indicates the company's ability to revert to higher-margin individual business mix and achieve its full-year margin guidance.

    And going forward⏳, with higher focus on individual policies, the margin is going to be towards the upper range of our guidance.

    Risks & concerns

    3
    RiskSeverity

    Impact of lumpy group business on VNB margins

    Higher share of group business in Q1 FY27 led to VoNB margin being at the lower end of guidance, but expected to normalize. — Management acknowledged

    medium

    Elevated operating and total cost ratios

    Opex ratio at 7.7% and total cost ratio at 12% in Q1 FY27, partly due to INR 2.3 billion GST impact and initial labor code effects, but expected to streamline. — Management acknowledged

    medium

    Dip in 61st month persistency

    61st month persistency declined due to the movement of the COVID cohort, but is expected to recover by Q3. — Management acknowledged

    low

    Q&A highlights

    6

    “But coming to your specific question, yes, the overall APE mix during the first quarter where we have always said that group business is a lumpy kind of business, and we had a higher share of group business in the first quarter. That has affected margin overall, and it has brought down as compared to last year.”

    Clarifies the reason for the VoNB margin being at the lower end of the guidance, attributing it to a temporary product mix shift towards lower-margin group business.

    asked by Avinash Singh

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance Across Key Metrics

    SBI Life reported a robust Q1 FY27, with new business premium (NBP) growing 23% to INR 89.1 billion and individual rated new business premium (IRP) increasing 14% to INR 39.7 billion, surpassing the industry's 13% CAGR. Gross written premium (GWP) also saw a 20% rise to INR 212.9 billion, while profit after tax (PAT) grew 22% to INR 7.2 billion. The company's assets under management (AUM) expanded by 10% to INR 5.2 trillion, and its embedded value stood at INR 852.9 billion, up 15% from June 2025.

    02

    Value of New Business (VoNB) Growth and Margin Dynamics

    The Value of New Business (VoNB) increased significantly by 29% to INR 14.1 billion, with a VoNB margin of 26.2%. Management noted that the margin was at the lower end of its 26-28% guidance range due to a higher, lumpy share of group business in the overall APE mix during the quarter. However, they expressed confidence that margins would move towards the upper range as the product mix normalizes with a greater focus on individual policies.

    03

    Strategic Shift Towards Protection and Non-ULIP Products

    The company continued its strategic focus on protection solutions and guaranteed non-par saving products. Individual protection APE grew 18% to INR 1.9 billion, with pure protection (non-ROP) growing 41% on an Individual APE basis. The non-ULIP product mix improved by 200 basis points year-on-year, with ULIP contribution decreasing to 61% from 65% in Q1 FY26, and non-ULIP products now contributing 38% to the mix.

    04

    Distribution Channel Expansion and Productivity

    All key distribution channels achieved double-digit expansion. Bancassurance (SBI and RRBs) contributed 47% to total APE, with individual APE growing 10% to INR 24.5 billion. The agency channel demonstrated strong growth, with individual APE increasing 20% YoY to INR 13.1 billion, supported by the addition of over 34,000 agents and 11 new branches. Other channels, including direct and other banks, grew by 160% and 31% respectively.

    05

    Cost Efficiency and Persistency Trends

    The opex ratio increased to 7.7% (from 6.3% in Q1 FY26) and the total cost ratio to 12% (from 10.8%), partly due to a GST impact of INR 2.3 billion and the initial effects of the labor code. Management clarified that these were partly one-off📎 impacts and expected streamlining. Persistency ratios showed improvement for 13th month (87.7%, up 61 bps) and 49th month (69.1%, up 68 bps), though 61st month persistency dipped due to the 'COVID cohort' moving through, with normalization expected by Q3.

    06

    Regulatory Environment and New Product Pipeline

    Management views the regulatory landscape as positive, expecting future regulations to benefit the industry. The company is also actively working on new product offerings, with a regular pay deferred annuity plan expected to be launched within the next quarter. Additionally, a new corporate agency tie-up with J&K Bank was announced, with business expected to commence in the current quarter.

    This is an AI-generated summary of a publicly available earnings call transcript.