SBI Life Insurance Q1 net profit up 5.1%

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26 Aug, 2025 12:21

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Private life insurer SBI Life Insurance posted a 5.1 percent year-on-year (YoY) rise in its Q1 FY21 net profit at Rs 390.89 crore.

The insurer saw a 30 percent YoY growth in renewal premium in Q1 even as new business premium saw a decline.

Renewal premium grew 30 percent to Rs 4,580 crore while new premium fell by 3 percent to Rs 3,060 crore in Q1.

The insurer's value of new business (VNB) decreased by 29 percent YoY to Rs 240 crore in the first quarter. The VNB margin increased by 80 bps from 17.9 percent in Q1FY20 to 18.7 percent in Q1FY21.

VNB is the present value of expected future earnings from new policies written during a specified period and it reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.

SBI Life said that it has achieved market leadership in total new business premium with 23.9 percent private market share in Q1FY21.

As far as persistency (renewal) is concerned, SBI Life had a 13th month (post first year) persistency of 81.55 percent in Q1 compared to 84.46 percent in the year-ago period.

The 61st month (post fifth year) persistency grew to 63.14 percent in the first quarter as compared 56.27 percent in the same period previous fiscal.

SBI Life's assets under management grew by 19 percent YoY to Rs 1.75 lakh crore. The debt-equity mix stood at 76-24 with over 90 percent of the debt investments ain AAA and sovereign instruments.

At the end of June 30, the insurer's net worth increased by 17 percent to Rs 9,310 crore.

The solvency ratio stood at 2.39 as against the regulatory requirement of 1.50.