SBI Life Insurance Company on July 24 reported a 14 percent year-on-year rise in net profit to Rs 594 crore for Q1 FY26 up from Rs 520 crore in the same quarter last year.
The company’s net premium income for the quarter stood at Rs 17,178.5 crore, marking a 14 percent increase over Rs 15,105.5 crore recorded in Q1 FY25.
First-year premium rose to Rs 3,539.5 crore, up 12.5 percent from Rs 3,146.4 crore a year earlier. Renewal premium saw a stronger jump, rising 23.5 percent year-on-year to Rs 10,546.3 crore from Rs 8,538.7 crore.
However, single premium income was marginally lower at Rs 3,728.1 crore compared to Rs 3,886.9 crore in the previous year.
Total income from investments, including policyholder and shareholder accounts, reached Rs 2,445.3 crore in the quarter, higher than Rs 2,257 crore in Q1 FY25. Of this, income from the shareholder account stood at Rs 296.9 crore, up from Rs 268.6 crore last year.
The company transferred Rs 321.6 crore from the policyholders’ account to the shareholders’ account, up 17 percent from Rs 275.2 crore in Q1 FY25.
Operating expenses, including employee remuneration and other costs, rose to Rs 1,915.2 crore from Rs 1,640.4 crore in Q1 FY25. Employee expenses increased to Rs 709.2 crore from Rs 625.2 crore, while other operating expenses jumped to Rs 420 crore from Rs 326.4 crore.
Commission expenses also rose to Rs 666 crore from Rs 568.9 crore, reflecting growth in business volumes.
SBI Life’s solvency ratio remained stable at 1.96, slightly lower than the 2.01 reported in Q1 FY25, but comfortably above the IRDAI-mandated 1.50. The expense management ratio stood at 10.75 percent, marginally higher than 10.53 percent in the same period last year. The company reported a basic earnings per share (EPS) of Rs 5.93, up from Rs 5.19 a year ago.
Persistency ratios, which track policyholder retention, showed improvement. The 13th-month persistency ratio (premium basis) rose to 84.23 percent from 83.61 percent in Q1 FY25, while the 61st-month ratio improved to 59.16 percent from 58.01 percent. The conservation ratio, which reflects renewal of policies, strengthened to 90.25 percent compared to 85.51 percent in the year-ago period.
Total assets under management (AUM) grew to Rs 4,78,181.5 crore as of June 30, 2025, up nearly 15 percent from Rs 4,16,823.7 crore a year ago. Shareholder investments stood at Rs 16,394 crore (up from Rs 14,400 crore).
The value of new business (VNB) generated during the quarter stood at Rs 1,090 crore, reflecting continued growth in new business acquisition.
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