SBI Life Insurance Company Limited — Q4 FY26 earnings call

Call held 22 Apr 2026

Management summary

SBI Life Insurance reported a strong operational performance in Q4 FY26, with robust growth in new business and gross written premiums, and a healthy VoNB margin of 27.5%. While PAT growth was modest at 2% due to GST and Labor Code impacts, the company maintained a strong solvency ratio of 1.90 and improved persistency. Management expressed confidence in maintaining a 14% growth rate and 27-28% VNB margins, driven by product mix optimization and diversified distribution channels.

Highlights

  • New business premium grew 20% to INR 425.5 billion.

  • Gross written premium grew 19% to INR 1,012.9 billion.

  • Value of New Business (VoNB) grew 12% to INR 66.7 billion, with a healthy margin of 27.5%.

  • Individual protection APE saw strong growth of 24%, and pure protection grew 122%.

  • 13th and 49th month persistency improved by 53 bps and 107 bps respectively.

Concerns

  • Profit after tax grew only 2% to INR 24.7 billion, impacted by GST and revised Labor Law.

  • Opex ratio increased to 6.1% from 5.3% in FY25, and total cost ratio to 10.6% from 9.7% in FY25, primarily due to GST and Labor Code.

  • Bancassurance channel sales degrew YoY in Q4, attributed to a sluggish sector-wide Q4.

Key financials

  1. New Business Premium 425.5 Bn +20%YoY
  2. Gross Written Premium 1,012.9 Bn +19%YoY
  3. Profit After Tax 24.7 Bn +2%YoY
  4. Value of New Business (VoNB) 66.7 Bn +12%YoY
  5. VoNB Margin 27.5%
  6. Indian Embedded Value (IEV) 807.9 Bn +15%YoY
  7. Assets Under Management (AUM) 4.9 Tn +9%YoY
  8. Solvency Ratio 1.9
  9. Opex Ratio 6.1%
  10. Total Cost Ratio 10.6%
  11. Annualized Premium Equivalent (APE) 242.7 Bn +13%YoY

What they filed

Q1 FY27: revenue up 18.8%, net profit up 22.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue40,302 18,862 23,071 38,996 23,115 −43%46,133 +145%4,071 −82%46,337 +19%
EBITDA606 596 -449 664 516 −15%615 +3%-1,046 −133%757 +14%
Net profit529 551 814 594 495 −6%577 +5%805 −1%725 +22%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Liquidity Liquidity disclosed Solvency ratio of 1.90 against regulatory requirement of 1.50 indicates strong capital base and liquidity.
    Our solvency ratio remains strong at 1.90 as against regulatory requirement of 1.50.

Guidance & targets

Revenue

  • Overall Growth Rate Revenue · coming year · High confidence around 14%
    Going forward also, we intend to maintain the growth rate at around 14%, which has been our CAGR for the last 3 to 5 years. And we will continue to maintain this kind of growth rate in coming year also.

    — Amit Jhingran

Profitability

  • VoNB Margin Profitability · coming years · High confidence 27% to 28% range

    From 26% to 28% range today

    So I think we said '27 to '28, and we will stick to that.

    — Management

Other

  • Deferred Annuity Product Launch Other · this quarter · High confidence go live by June
    So our endeavor is to launch this deferred annuity product in this quarter itself. So we are aiming to go live by June, we should launch the deferred annuity. Otherwise, we'll go to the next quarter.

    — Management

Cost

  • Opex Ratio Cost · coming years · Medium confidence in that range
    But we are confident that it will not go under our radar rather in the way we are managing the expenses of the company will continue to be in that range.

    — Management

Distribution

  • Channel Mix Shift from Banca Distribution · coming years · Medium confidence 3% to 4% shift
    So in last 2 years, we have seen approximately 3% to 4% shift from banca to agency and emerging businesses and all. And we expect the similar trend in coming years.

    — Management

What to watch in Q1 FY27

Deferred Annuity Product Launch

By June 2026 (Q1 FY27)
Current In development, aiming for launch
Target Product launched and live

Why it matters

This new product is expected to contribute to NOP growth and diversify the annuity portfolio.

So our endeavor is to launch this deferred annuity product in this quarter itself. So we are aiming to go live by June, we should launch the deferred annuity. Otherwise, we'll go to the next quarter.

Risks & concerns

  • Impact of GST and revised Labor Law on profitability and cost ratios

    medium

    Profit after tax grew only 2% to INR 24.7 billion due to these impacts. Opex ratio increased from 5.3% to 6.1%, but management expects stabilization.

    Management acknowledged

  • Sluggish Q4 for the insurance sector impacting banca channel sales

    low

    Banca channel sales degrew YoY in Q4, attributed to geopolitical events affecting the entire sector, but management views it as temporary.

    Analyst acknowledged

Q&A highlights

7 direct
Persistency trends and VNB assumption refinements Direct
So, as we always keep mentioning that year-end, we keep refine our assumption looking to reflect the current experience. So, there are some changes in the mortality, some on the persistency. We've also seen some improvement coming on account of the long-term protection improvement on the persistency.

Clarifies the drivers behind persistency changes and VNB assumption refinements, indicating a focus on long-term protection.

Asked by Avinash Singh

Future growth rate and VNB margins Direct
Going forward also, we intend to maintain the growth rate at around 14%, which has been our CAGR for the last 3 to 5 years. And we will continue to maintain this kind of growth rate in coming year also.

Asked by Avinash Singh

Impact of GST and Labor Code on cost ratios Direct
So that is what I said that now the GST is already in this cost of 10.8%. So that has already been built in. We do not see costs going higher on account of this particular thing. Prithesh, would you like to talk about the margin?

Asked by Prayesh Jain

Solvency and capital allocation strategy Direct
As far as solvency is concerned, you see the company is generating good cash accruals and strengthening its capital base through internal accruals. So we have not raised any fresh capital for strengthening our margin. And this is efficient use of capital that is resulting in solvency of 1.90 against the regulatory requirement of 1.50.

Asked by Madhukar Ladha

Banca channel growth and potential open architecture impact Partial
We are not aware about this particular topic as of now. But we are very sure that any regulatory changes, we will be able to meet with a robust response.

Addresses concerns about potential regulatory changes (open architecture) and banca channel performance, highlighting the company's adaptability.

Asked by Shreya Shivani

Product mix strategy, particularly ULIP vs Non-ULIP and Par vs Non-Par Direct
We have been a company which had dominant sales of ULIP in the past. But as you are aware, you have been attending these analyst meet for the last couple of years, our focus has been to improve the product mix in favor of non-ULIP products also.

Asked by Supratim Datta

Timeline for deferred annuity product launch Direct
So our endeavor is to launch this deferred annuity product in this quarter itself. So we are aiming to go live by June, we should launch the deferred annuity. Otherwise, we'll go to the next quarter.

Provides a specific timeline for a new product launch, which could contribute to future NOP growth.

Asked by Sanketh Godha

IFRS transition and its impact on KPIs Direct
See, as far as the IFRS is concerned, we are prepared. And as you know, we have submitted the pro forma to the regulator for the last two financial years. And as already mentioned in the initial remarks we are going to have a forbearance for this fiscal. And next year onwards we will be prepared to launch into the IFRS regime.

Confirms readiness for IFRS transition and clarifies the timeline for adoption, addressing a significant regulatory change.

Asked by Harshal Mehta

2 min read 7 chapters

Detailed narrative

Strong Financial Performance and Growth Drivers

SBI Life delivered a robust performance in FY26, with new business premium growing 20% to INR 425.5 billion and gross written premium increasing 19% to INR 1,012.9 billion. The company maintained its leadership in individual rated new business premium with a 22.9% private market share. This growth was supported by a balanced product and distribution mix, including significant contributions from group new business premium (39% growth) and individual APE (13% growth).

Profitability and Value Creation

Profit after tax (PAT) for the year grew 2% to INR 24.7 billion. Excluding the impact of GST and revised Labor Law, PAT would have grown 29% to INR 31.2 billion. The Value of New Business (VoNB) increased 12% to INR 66.7 billion, with a healthy VoNB margin of 27.5%. The Indian Embedded Value (IEV) stood at INR 807.9 billion, marking a 15% growth over the previous year, with an embedded value operating profit of INR 138.6 billion.

Product Mix Evolution and Protection Focus

The company continued its strategy of product diversification, with guaranteed non-par savings contributing INR 42.7 billion (19% of individual APE). While ULIPs contributed 65% of APE (down from 70% last year), there was a strong focus on protection, with individual protection APE growing 24% to INR 10.3 billion and pure protection growing 122%. The par segment also saw exceptional growth of 133% in individual APE.

Distribution Channel Strategy

SBI Life leveraged a multi-channel distribution strategy. Bancassurance, primarily through SBI and RRBs, contributed 60% of the total APE business, with individual APE growing 11% to INR 141.2 billion. The agency channel showed strong growth, with individual APE increasing 15% to INR 68.6 billion, supported by the addition of over 1,20,000 agents and 120 new branches. Other channels, including direct and online, grew 22% and 47% respectively.

Cost Management and Operational Efficiency

The opex ratio increased to 6.1% (from 5.3% in FY25) and total cost ratio to 10.6% (from 9.7% in FY25), primarily due to the impact of GST and the revised Labor Law. Management clarified that without these impacts, the opex ratio would have been around 5.5%. Despite these factors, the company aims to maintain its cost ratios in the current range through rationalization measures and continued investments in IT and branches.

Regulatory Preparedness and Solvency

The company maintained a strong solvency ratio of 1.90 against the regulatory requirement of 1.50, driven by robust cash accruals and internal capital strengthening. SBI Life is also prepared for the transition to Indian Accounting Standards (Ind AS), having submitted pro forma financials to the regulator and planning for adoption from April 1, 2027, with forbearance for the current fiscal.

Persistency and Customer Service

Persistency rates for individual regular premium showed improvement, with 13th month persistency at 87.9% (up 53 bps) and 49th month persistency at 69.1% (up 107 bps). The company reported a high death claim settlement ratio of 99.4% and a low misselling ratio of 0.02%, reflecting its commitment to customer service and ethical practices.

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