SBI Life Insuran

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).

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.

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.

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.

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.

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 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.