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Informist, Wednesday, Apr. 22, 2026

 

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--SBI Life: Will maintain CAGR around 14% going ahead
--CONTEXT: SBI Life management's comments in post-earnings analyst concall
--SBI Life: Will meet guidance despite global headwinds
--SBI Life: Will have good sales growth in coming qtrs, years
--SBI Life: Will continue to invest in direct channel sales
--SBI Life: No major expense planned in near future except strengthening IT
--SBI Life: Will keep value of new business margin at 26-28% in coming qtrs

--SBI Life: Branches opened in last 3 yrs well on track to break even
--SBI Life: FY26 operating expense ratio sans GST, labour law impact at 5.5%

 

By Shweta and Ashutosh Pati

 

NEW DELHI/MUMBAI – SBI Life Insurance Co. Ltd. Wednesday said it is looking to maintain the value-of-new-business margin at 26-28% in upcoming quarters. The company's value-of-new-business margin was 27.5% for the financial year 2025-26 (Apr-Mar). "We expect that our margin will continue to be in a similar range that we maintain about 26-28% range... And our endeavour is to report the margin above 27%," the management told analysts in a post-earnings conference call.

 

The country's largest private-sector life insurer posted a net profit of INR 8.05 billion for the March quarter, down 1.1% on year but up 40% on quarter. For FY26, its net profit was INR 24.7 billion. The management said the profit was pulled down by the removal of goods and services tax on life insurance and implementation of the new labour codes. Excluding these, the company's net profit would have been INR 31.2 billion for FY26, up 29%, it said.

The company's operating expense ratio was 6.1% for FY26, up from 5.3% a year ago. However, the management said the operating expense ratio would have been 5.5%, excluding the GST and labour codes impact. The company's shares closed at INR 1,884.80 on the National Stock Exchange Wednesday, down 1.4%.

 

The company aims to maintain a compounded annual growth rate of annualised premium equivalent of around 14% going ahead. The company's compounded annual growth rate for annualised premium equivalent "has been at this level for the last 3–5 years", the management said. "We will continue to maintain this kind of growth rate in the coming year also."

 

Based on consumer behaviour, the management said the company will meet the guidance for FY27 despite the current geopolitical crisis. The management is also confident of healthy sales growth in upcoming quarters and years, depending on month-on-month variations.    

 

Asked about future investments, the management said the company will continue to invest in direct channels such as its website for better sales and it is going to be a formidable force in the future. "...other than strengthening the IT (information technology for customer ease), there is no major expense planned in the near future," the management added. 

 

At the end of FY26, the bancassurance channel accounts for 60% of SBI Life Insurance Co.'s channel mix, followed by the agency channel at 29%, and other channels at 11%.

 

The company has been expanding its business by strengthening agency channels and opening new branches. Any new branch will take time to break even, but these newly opened branches are "well on track", the management said. "We are satisfied with the contribution that is coming through these branches," it added. At present, the company has more than 40,000 branches of distributors.  End

 

Edited by Rajeev Pai

 

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