SBI Life Insurance Company announced its financial results for the second quarter of fiscal year 2027, ending September 30, 2026. The company reported a 13% growth in gross written premium to INR484 billion. Profit after tax increased by 17% to INR12.7 billion. The embedded value grew by 15% to INR873.5 billion, and assets under management reached INR5.3 trillion, up 9% year-on-year. The company maintained a strong solvency ratio of 1.97.
SBI Life Insurance Q2 FY27 Earnings Highlights
SBI Life Insurance Company Limited has announced its financial and operational results for the second quarter and the first half of the fiscal year 2027, ended September 30, 2026. The company demonstrated robust performance across key financial metrics, driven by strong new business premiums and profitable growth initiatives.
Financial Performance
Key financial highlights for the period include:
- Gross Written Premium: Achieved INR484 billion, marking a 13% growth year-on-year.
- Profit After Tax (PAT): Stood at INR12.7 billion, an increase of 17% compared to the corresponding period last year.
- Value of New Business (VoNB): Increased by 19% to INR32.7 billion, with a VoNB margin of 27.9%.
- Embedded Value: Grew by 15% to INR873.5 billion as of September 30, 2026.
- Assets Under Management (AUM): Increased by 9% to INR5.3 trillion.
- Solvency Ratio: Remained strong at 1.97, well above the regulatory requirement of 1.50.
New Business Performance
In the first half of FY27, SBI Life focused on sustainable, profitable growth. New Business Premium stood at INR202.6 billion, with a growth of 10%. The company retained a significant market share in the individual rated new business premium segment.
Individual Rated New Business Premium was INR97.2 billion, a 12% growth, maintaining a private market share of 22.6%. Individual APE (Annual Premium Equivalent) grew by 11% year-on-year to INR97.7 billion.
Total New Business Premium of INR202.6 billion included INR65.3 billion from Group New Business Premium, contributing 32% to the total and showing a 6% year-on-year growth. Overall APE stood at INR117.5 billion, an 18% growth.
Product Mix and Distribution
The company sold a total of 9.78 lakh new policies during the period, covering 1.43 crore lives. Growth in sum assured reflects strong consumer confidence. The product mix saw a shift with ULIP share at 60.2 billion (62% of product mix), compared to 65% in H1 FY26, indicating a gradual shift towards non-ULIP products. Individual protection APE grew by 16%.
The bancassurance business contributed 53% of the total APE, while the agency channel saw a growth of 12%. The company added over 72,000 agents and opened 14 new branches during the period.
Profitability and Operational Efficiency
Profit after tax for the period ended September 30, 2026, was INR12.7 billion, a 17% growth. Excluding the GST impact of INR5.3 billion, the PAT was INR16.9 billion, a 39% growth. The Value of New Business stood at INR32.7 billion, reflecting a 19% growth.
The operational efficiency is reflected in the opex ratio of 6.9% and total cost ratio of 11.7%.
Persistency and Risk Management
Persistency ratios showed improvement across key cohorts, with the 13th, 25th, and 49-month ratios standing at 87.6%, 78.4%, and 69.3% respectively, showing year-on-year improvements.
The death claim settlement ratio was high at 99.1%, with a misselling ratio of 0.035%.
Future Outlook
SBI Life expressed confidence in its ability to adapt to evolving regulatory landscapes and market dynamics, aiming for sustainable profitable growth through customer-centric solutions and a diversified product portfolio. The company is actively leveraging technology to enhance operational efficiency and customer experience.
Source: BSE
