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Informist, Friday, Oct. 24, 2025

By Kabir Sharma
 

MUMBAI – A loss from investments in multiple segments weighed on SBI Life Insurance Co. Ltd.'s net profit for the quarter ended September. The fall in the bottom line was despite the steep increase in net premium income and a sharply lower change in actuarial liability. 

SBL Life reported a net profit of INR 4.95 billion for the September quarter, down 6.6% on year. The bottom line fell 16.8% sequentially. The company announced results just before the market closed. Shares of the insurer ended 0.7% lower at INR 1,839.80 on the National Stock Exchange.

A major blow for the insurer came in the form of investment losses, which totalled INR 20.55 billion in the reporting quarter, against income of INR 197.53 billion a year ago. Within investments, the linked individual life segment reported a loss of INR 53.95 billion, while the linked pension segment reported a net loss of INR 3.53 billion. 

The fall in net profit was despite a near 23% on-year and 45% on-quarter increase in the insurer's net premium income. The company reported a net premium income of INR 248.48 billion in the reporting quarter. Renewal premium income rose steadily by 19% on year in Jul-Sept, reaching INR 140.03 billion. Single premium income rose over 50% to 57.92 billion in the reporting quarter. 

Sharply lower changes in actuarial liability limited the bottom-line decline for the insurance company. Change in actuarial liability declined by 74% on year in the reporting quarter to INR 60.39 billion.

Assets under management of the insurer rose 10% on year to INR 4.81 trillion as on Sept. 30, with a debt-equity mix of 60:40. Approximately 95% of the debt investments are in 'AAA' rated and sovereign instruments, the company said. 

The company's solvency ratio was 1.94 times as of Sept. 30, against the regulatory requirement of 1.50. The company's net worth increased by 13% to INR 182.9 billion as on Sept. 30. The 13th-month persistency ratio was 85.37% as on Sept. 30, up from 84.24% a qtr ago. In terms of channel mix, the bancassurance channel accounts for 57%, the agency channel for 29%, and other channels for 14%.

For the half year ended September, the company reported new business premiums of INR 183.5 billion, up 17% on the year. Gross written premium grew by 19% to INR 429.0 billion in Apr-Sept, mainly due to 24% growth in single premium and 21% growth in renewal premium. Renewal premium rose to INR 245.5 billion. The net premium income for Apr-Sept was at INR 420.27 billion, up from INR 353.72 billion a year ago. 

Value of new business improved 14% on year to INR 27.5 billion in Apr-Sept, while new business margin improved to 27.8% from 26.8% year ago. 

SBI Life Managing Director and Chief Executive Officer Amit Jhingran said the government's reforms in the goods and services tax will drive sustainable growth of the sector. "We welcome the Indian Government's GST reforms, a key step toward insurance coverage for all by 2047, improving affordability and accessibility. These reforms will drive broader adoption, financial security and sustainable sector growth."  End

Edited by Saji George Titus

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