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Informist, Wednesday, Apr. 22, 2026

By Priyasmita Dutta

NEW DELHI – SBI Life Insurance Co. Ltd. reported a slight on-year fall in net profit during the March quarter owing to a sharp fall in its net investment income under policyholders' accounts. However, a sharp fall in change in actuarial liability capped the fall in the bottom line. The company also released funds for future appropriations in policyholders' accounts during the quarter, adding to the overall fall in the bottom line.

The country's largest private-sector life insurer posted a net profit of INR 8.05 billion, down 1.1% on year, but up 40% on quarter. The sequential rise in net profit is owing to the insurer's change in actuarial liability being sharply higher at INR 273.47 billion in the December quarter.

During the March quarter, SBI Life Insurance had a net investment loss of INR 239.39 billion compared with a loss of INR 10.41 billion in the year-ago period, and INR 155.31 billion income in the trailing quarter. Change in actuarial liability, on the other hand, was a negative value of INR 153.48 billion during the March quarter, compared with INR 77.06 billion a year ago, and INR 273.47 billion a quarter ago. 

The sharp fall in change in actuarial liability helped the surplus in the policyholders' account to rise to INR 21.94 billion from INR 15.63 billion a year ago and INR 4.27 billion a quarter ago. SBI Life let go of INR 1.70 billion in the policyholders' account in the March quarter for future appropriations, as against holding back INR 1.58 billion in the previous quarter.

The life insurer benefited from the goods and services tax exemptions for individual insurance policies during the March quarter, although it was limited compared with the December quarter. It reported a gain of INR 1.2 million on this account compared with outflows of INR 2.90 billion a year ago. During Oct-Dec, gains under this were to the tune of INR 34.1 million. The company released the financial results post-market hours, and at 1629 IST, shares of the company were down 1.4% at INR 1,884.80 on the National Stock Exchange.

The firm's net premium income rose over 16% on year and fell over 8% on quarter to INR 276.84 billion in the reporting quarter. Assets under management of the insurer rose 9% on year to INR 4.9 trillion as on Mar. 31, with a debt-equity mix of 62:38. Approximately, 94% of the debt investments are in 'AAA' and sovereign instruments, the company said.

The company's solvency ratio was 1.90 times as of Mar. 31, against the regulatory requirement of 1.50 times. It was 1.91 times at the end of December. The company's net worth increased 12% to INR 190.8 billion as of Mar. 31. The 13th-month persistency ratio was 87.9% for 2025-26 (Apr-Mar), up slightly from 87.4% a year ago. The 61st-month persistency ratio was 58.1% during FY26, lower than 63.6% year ago. In terms of channel mix, the bancassurance channel accounts for 60%, the agency channel 29%, and other channels 11%.

For FY26, the company reported new business premiums of INR 425.5 billion, up 20% on year. Gross written premium grew 19% to INR 1.01 trillion during the same period. Value of new business improved 12% on year to INR 66.7 billion in FY26. New business margin weakened slightly to 27.5% from 27.8% year ago. 

SBI Life Managing Director and Chief Executive Officer Amit Jhingran said the life insurance industry witnessed improved momentum during FY26, supported by recent regulatory measures and a gradual shift in customer preference towards protection-oriented products. The exemption of GST on individual policies enhanced affordability and supported demand during the period, he said. "SBI Life remains focused on maintaining a balanced approach to growth and profitability. The company continues to strengthen its product portfolio, distribution capabilities and operational efficiencies, while adhering to prudent risk management practices." 

The insurer's net profit during FY26 grew 2.4% on year to INR 24.70 billion, with net premium income growing 19% on year to INR 999.56 billion.  End

Edited by Akul Nishant Akhoury

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