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Informist, Wednesday, Jan. 28, 2026

 

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--SBI Life Oct-Dec net profit INR 5.77 bln 
--SBI Life Oct-Dec net premium income INR 302.45 bln vs INR 248.28 bln yr ago 
--SBI Life Oct-Dec net profit INR bln 5.77 vs INR 5.51 bln year ago 
--SBI Life Oct-Dec labour code implementation cost INR 1.35 bln 
--SBI Life Apr-Dec net profit INR 16.66 bln vs INR 16.00 bln year ago 
--SBI Life Apr-Dec net premium income INR 722.72 bln vs INR 601.99 bln yr ago
--SBI Life: Solvency ratio 1.91 times on Dec 31 vs 1.94 quarter ago
--SBI Life 13th month persistency 83.99% as on Dec 31 vs 85.37% qtr ago

 

By Priyasmita Dutta and Aaryan Khanna

 

NEW DELHI – SBI Life Insurance Co. Ltd. reported a slight on-year rise in its net profit in the December quarter on the back of healthy growth in net premium income and a rise in income from investments on policyholders' accounts. The company held back funds for future appropriations in policyholders' accounts, capping the overall rise in the bottom line. The implementation of the new labour codes also ate into profits.

 

The country's largest private-sector life insurer posted a net profit of INR 5.77 billion, up nearly 17% on quarter and 5% on year. The firm's net premium income rose nearly 22%, both on quarter and on year, to INR 302.45 billion in the reporting quarter.

 

The insurer's net income from investments rose to INR 155.31 billion in Oct-Dec from a loss of INR 62.82 billion a year ago. This helped the surplus in the policyholders' account to rise to INR 4.27 billion from INR 3.47 billion a year ago. SBI Life held back INR 1.58 billion in the policyholders' account in the December quarter for future appropriations, nearly double the amount a year ago.

 

It also incurred a cost of INR 1.35 billion during the quarter due to implementation of the new labour codes, which were notified in November. However, the life insurer benefitted from the goods and services tax exemptions for individual insurance policies during the December quarter. It reported a gain of INR 34.1 million on this account compared to outflows of INR 2.68 billion a quarter ago and INR 3.12 billion a year ago. At 1517 IST, shares of the company were up 0.9% at INR 2,056.00 on the National Stock Exchange.

 

The increase in the insurer's income from investments was, however, entirely offset by its sharply high change in actuarial liability. The change in actuarial liability was at INR 273.47 billion in the December quarter--over nine times higher than a year ago and over four times higher sequentially. 

 

Assets under management of the insurer rose 16% on year to INR 5.1 trillion as on Dec. 31, with a debt-equity mix of 59:41. Approximately, 95% of the debt investments are in 'AAA' and sovereign instruments, the company said. 

 

The company's solvency ratio was 1.91 times as of Dec. 31, against the regulatory requirement of 1.50 times. It was 1.94 times at the end of September. The company's net worth increased 15% to INR 190.1 billion as on Dec. 31. The 13th-month persistency ratio was 87.1% for nine months ended December, up from 86.1% a year ago. The 61st-month persistency ratio was 58.8% during Apr-Dec, lower than 62.7% year ago. In terms of channel mix, the bancassurance channel accounts for 62%, the agency channel 27%, and other channels 11%.

 

During the December quarter, the company reported new business premiums of INR 129.8 billion, up over 23% on year, as per calculations. Gross written premium grew nearly 22% to INR 304.5 billion in Oct-Dec. Value of new business improved nearly 22% on year to INR 22.8 billion in Oct-Dec, calculations showed. New business margin improved to 27.2% during Apr-Dec from 26.9% year ago. 

 

SBI Life Managing Director and Chief Executive Officer Amit Jhingran said the life insurance industry witnessed improved momentum during the third quarter, supported by recent regulatory measures and a gradual shift in customer preference towards higher sum assured products. The exemption of GST on individual policies contributed to improved affordability and supported demand during the quarter, 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 the first nine months of FY26 grew 4.1% on year to INR 16.66 billion, with net premium income growing over 20% on year to INR 722.72 billion.  End

 

Edited by Tanima Banerjee

 

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