SBI Life Insuran

SBI Life Insurance reported robust growth in Q2 FY26, with New Business Premium reaching INR 183.5 billion, a 17% increase, and Gross Written Premium growing 19% to INR 429 billion. The Value of New Business (VoNB) expanded by 14% to INR 27.5 billion, accompanied by a 98 basis point improvement in VoNB margin to 27.8%. Assets Under Management (AUM) also grew 10% year-on-year to INR 4.81 trillion, demonstrating strong operational performance.

The company is strategically shifting its product mix, with a strong focus on protection and non-participating products. The protection segment recorded a 33% year-on-year growth on an APE basis, contributing 11% of total APE. New products like Smart Shield Plus and Smart Money Back Plus were introduced, with Smart Money Back Plus receiving over 8,500 customers in less than 15 days and Smart Shield Plus contributing 11% to total protection sum assured.

The recent GST reforms had a transitional impact on profitability, with profit after tax growing by 4% to INR 10.89 billion. The GST impact on VoNB margin for H1 FY26 was 80 basis points. However, management expects to absorb this impact in H2 by leveraging product mix changes, including increased focus on margin-accretive non-par and par products, and operational efficiency, without altering distributor commissions.

Bancassurance, particularly through SBI and RRBs, continues to be a dominant channel, contributing 57% of total APE business. While individual APE growth was 6% for H1, the company noted a significant improvement in September, with individual new business premium growth around 15% in that month, following strategic tweaks to norms and re-engagement efforts. Other channels, including direct, corporate agents, brokers, online, and web aggregators, grew 36% in individual new business premium.

Despite the GST impact, the company maintained a strong solvency ratio of 1.94 against a regulatory requirement of 1.50. The opex ratio stood at 6.2% and total cost ratio at 10.9% for H1 FY26. The increase in operating expenses is attributed to planned expansion, with 44 new branches opened and over 3,500 employees added in the first half, supporting long-term growth.

SBI Life remains committed to a customer-first approach, passing the entire GST benefit to customers and enhancing product benefits. The death claim settlement ratio stood at 99%, and the mis-selling ratio was low at 0.02%. Digitalization efforts are ongoing, with 99% of individual proposals submitted digitally and 59% processed through automated underwriting, aiming for enhanced services and seamless customer experience.