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Informist, Thursday, Jul. 24, 2025

 

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--SBI Life Apr-Jun net profit INR 5.94 bln 
--SBI Life Apr-Jun net profit INR 5.94 bln vs INR 5.20 bln year ago 
--SBI Life Apr-Jun net premium income INR 171.79 bln vs INR 151.05 bln yr ago 
--SBI Life: Solvency ratio 1.96 times as on Jun 30 
--SBI Life 13th month persistency 84.23% as on Jun 30 vs 86.64% qtr ago
--SBI Life: New business premium INR 72.7 bln as on Jun 30, up 3% on year 
--SBI Life: Renewal premium INR 105.5 bln Apr-Jun, up 24% on year 
--SBI Life's gross written premium INR 178.1 bln Apr-Jun, up 14% on year 
--SBI Life: AUM INR 4.76 tln as on Jun 30, up 15% on year
--SBI Life: Value of new business INR 10.9 bln Apr-Jun, up 12% on year
--SBI Life Apr-Jun value of new business margin 27.4% vs 26.8% year ago

   

By Siddhi Chauhan and Sourabh Kumar

 

MUMBAI – SBI Life Insurance Co.'s net profit for quarter ended June posted a moderate growth on year on the back of an on-year rise in income from investments and net premium income. However, a sharp sequential fall in net premium income and gross premium income resulted in the net profit to decline on quarter. The bank's board approved the re-appointment of Amit Jhingran as the managing director and chief executive officer from Oct. 1 to Jan. 31, 2027.

 

The life insurance company posted a net profit of INR 5.94 billion in Apr-Jun, up 14.4% on year but down 26.9% on quarter. The net profit rose on year as net income from investment rose nearly 12% on year to INR 215.25 billion. In Jan-Mar, the company faced a net loss from investment which was at INR 10.41 billion. 

 

The net premium income for the quarter ended June rose nearly 14% on year to INR 171.79 billion but fell a whopping 28% on quarter. In Jan-Mar, net premium income stood at INR 238.61 billion. 

 

The first year premium rose to INR 35.39 billion, from INR 31.46 billion year ago. In the quarter ended March, the first year premium was at INR 48.59 billion. Renewal premium for the reporting quarter was at INR 105.46 billion, up from INR 85.39 billion a year ago. In the quarter ended March, the renewal premium was at INR 146.80 billion. The single premium for the reporting quarter was at INR 37.28 billion, down from INR 38.87 billion year ago. In the Jan-Mar quarter, the single premium was at INR 44.63 billion.

 

The life insurer's individual new business premium rose 4% to INR 49.4 billion in the June quarter. The new business premium rose 3% on year to INR 72.7 billion in the June quarter. The protection new business premium was INR 9.8 billion in Apr-Jun. The annualised premium equivalent was up 9% on year at INR 39.7 billion for Apr-Jun.

 

The 13th month persistency ratio, which determines customer stickiness, stood at 84.23% on a premium basis as of Jun. 30, against 86.64% quarter ago. Solvency ratio was at 1.96, as of Jun. 30, as against the regulatory requirement of 1.50, indicating a strong financial position of the company. The assets under management grew 15% on year to INR 4.76 trillion as of Jun. 30.

 

 

SBI Life Insurance's gross written premium, which is the total premium written by the company before deductions for reinsurance ceded, was up 14% from last year to INR 178.1 billion in the June quarter. It registered a robust growth due to the insurance company gaining 12% in New Business Regular premium and 24% in Renewel premium in the June quarter. Shares of SBI Life Insurance Co. closed 0.9% lower at INR 1,793.60 on the National Stock Exchange Thursday. 

 

The value of new business grew 12% on year to INR 10.9 billion in the June quarter. The value of new business margin was 27.4% in Apr-Jun, up from 26.8% last year. Further, the company said bancassurance constituted 58% of the insurance company's annualised premium equivalent channel mix. It was followed by agency channel, which constituted 27%. 

 

The total cost ratio of the insurance company in the June quarter was 10.8%, up 3 basis points from last year. The commision ratio was 4.4%, similar to last year. The operating expense ratio in the June quarter rose to 6.3% from 6.1% last year. The insurance company's surrender ratio fell to 5.6% in the June quarter from 6.3% in the year-ago period. 

 

"In Apr-Jun, the company is able to achieve favorable shift in our product mix towards protection solutions and guaranteed non-par savings, reflecting evolving customer preferences and our strategic focus," the company's Managing Director and Chief Executive Officer Amit Jhingran said in a press release. "There has been remarkable growth in New Business Sum Assured mainly due to growing awareness of customer towards financial security and fulling dreams of their loved ones."  End

 

Edited by Akul Nishant Akhoury

 

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