SBI Life shares top Nifty gainer, rise 7% on FY25 PBT growth and positive brokerage views

SBI Life shares in focus as Q4 premium moderates; FY25 profit before tax rises 17%

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Shares of SBI Life Insurance were the top gainers on Nifty 50 index, rising by over 7 percent in trade on April 25 following the March quarter results and positive comments by key brokerages.

Nomura has maintained its Buy rating with a target price of Rs 1,800, while Motilal Oswal also reiterated its Buy rating with a more optimistic target price of Rs 2,000.

The performance also reflected strong growth in renewal and first-year premiums, though it was offset by a sharp decline in single premiums.

For Q4FY25, total premium income fell 5.1 percent year-on-year to Rs 23,860 crore, primarily due to a steep drop in single premiums, which declined to Rs 4,462.55 crore from Rs 7,709.56 crore a year ago. However, the core business showed resilience — first-year premiums rose 7.3 percent to Rs 4,858.69 crore and renewal premiums grew 12.9 percent to Rs 14,680 crore.

On a full-year basis, total premium income increased 4.3 percent to Rs 84,059.83 crore. This was supported by a 10.9 percent growth in renewal premiums to Rs 49,407.79 crore, even as single premiums dropped 22 percent year-on-year.

SBI Life reported shareholders’ profit before tax of Rs 1,105.83 crore for FY25, up 17 percent from Rs 947.59 crore in the previous year. Persistency also improved, with 13-month persistency at 86.64 percent, compared to 85.76 percent in the same quarter last year — a sign of better customer retention.

The solvency ratio stood at 1.96x as of March 31, 2025, comfortably above regulatory requirements. Meanwhile, the expense management ratio came in at 8.40 percent in Q4, reflecting the company’s ongoing investments in digital capabilities and expanding distribution reach.

Despite some pressure from lower single premiums, the company’s improving persistency, rising core premium income, and steady solvency position may help anchor investor confidence going forward.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.