This article first appeared on GuruFocus .
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New Business Premium:INR89.1 billion, growth of 23%, private market share of 20.5%.
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Individual Rated New Business Premium:INR39.7 billion, growth of 14%, private market share of 22.2%.
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Gross Written Premium:INR212.9 billion, growth of 20%.
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Profit After Tax:INR7.2 billion, growth of 22%.
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Value of New Business (VONB):INR14.1 billion, growth of 29%, VONB margin of 26.2%.
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Indian Embedded Value:INR852.9 billion.
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Assets Under Management:INR5.2 trillion, growth of 10%.
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Solvency Ratio:1.96, against regulatory requirement of 1.50.
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Operational Expense Ratio:7.7%, Total Cost Ratio: 12%.
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Persistency Rates:13th month at 87.7%, 49th month at 69.1%.
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Settlement Ratio:98.8%.
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Miss-Selling Ratio:0.02%.
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Release Date: July 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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SBI Life Insurance Co Ltd ( NSE:SBILIFE ) reported a 14% increase in individual-rated premium, indicating strong growth in the first quarter of FY2027.
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The company achieved a 23% growth in new business premium, with a private market share of 20.5%.
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Profit after tax for the quarter stood at INR7.2 billion, marking a 22% increase over the previous year.
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The value of new business grew by 29%, with a VONB margin of 26.2%.
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Assets under management reached INR5.2 trillion, reflecting a 10% growth over the previous year.
Negative Points
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The solvency ratio of 1.6 is below the regulatory requirement of 1.96, indicating potential financial stability concerns.
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There was a negative impact on margins due to a higher share of group business, which typically has lower margins compared to individual business.
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The GST impact for the quarter was INR2.3 billion, affecting overall profitability.
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Operating expenses increased, with the OpEx ratio rising to 7.7% from 6.3% in the previous year.
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The 61st month persistency rate declined due to the impact of the COVID cohort, affecting long-term policy retention.
Q & A Highlights
Q: Can you provide clarity on the VNB growth and margins, especially considering the GST impact and the high GTI proportion this quarter? Also, how do you see the agency channel growth progressing? A: The focus remains on individual rated premium (IRP) growth and maintaining margins within the 26% to 28% range. The high share of group business this quarter affected margins, but we expect normalization going forward. The agency channel has shown strong growth due to strategic initiatives, and we anticipate continued strong performance from both agency and SBI channels.
Q: What is the outlook on GST impact and the increase in other expenses? A: The GST impact remains at around 1.1% this quarter, and we expect it to persist in the next quarter before normalizing. The increase in other expenses is due to higher stamp duty from increased sum assured and labor code impacts, which should stabilize in the coming quarters.
Q: Can you elaborate on the sum assured growth and the nature of the GTI business? A: We have increased rider attachments in ULIP products, contributing to higher sum assured. Approximately 45% to 50% of policies now include riders. We do not comment on individual GTI contracts, but the business is significant and contributes to our growth.
Q: What is causing the dip in the 61st-month persistency, and how do you expect it to change? A: The dip is due to a cohort from the COVID period moving through the persistency timeline. We expect this cohort to move out by the end of the third quarter, normalizing the 61st-month persistency by year-end.
Q: How do you view the regulatory landscape and its impact on your operations? A: We are well-positioned within the regulatory framework, with low grievance and commission rates. We anticipate that future regulations will continue to support industry growth and align with our focus on customer service.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
