Has SBI Life Achieved a 14% Increase in Q1 Net Profit?
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Synopsis
SBI Life Insurance Company has reported a striking 14% YoY profit growth for Q1 FY26, showcasing impressive metrics across the board. This article delves into the key figures and insights that underline the company’s robust performance in the insurance sector.
Key Takeaways
- 14% YoY increase in net profit to Rs 594 crore.
- Net premium income rose to Rs 17,178 crore.
- Renewal premiums grew by 23% to Rs 10,546 crore.
- First-year premium increased to Rs 35,390 crore.
- Assets under management reached Rs 4.8 lakh crore.
Mumbai, July 24 (NationPress) SBI Life Insurance Company announced a remarkable 14% year-on-year (YoY) growth in its net profit for the June quarter (Q1 FY26), with profits rising to Rs 594 crore, up from Rs 520 crore in the same quarter last year.
The net premium income for the April–June quarter reached Rs 17,178 crore, reflecting a 14% increase from Rs 15,105 crore in the corresponding quarter of the previous year, as stated in the stock exchange filing.
Renewal premiums amounted to Rs 10,546 crore in Q1 FY26, showcasing a robust 23% growth compared to last year.
Additionally, the first-year premium stood at approximately Rs 35,390 crore, an increase from Rs 31,460 crore in Q1 FY25.
The company emphasized that renewal premiums continue to be vital for its operations and are anticipated to drive growth in the forthcoming quarters.
SBI Life’s new business premium (NBP) also experienced a modest 3% year-on-year increase, reaching Rs 7,270 crore, up from Rs 7,030 crore in the previous year.
Gross written premium (GWP) rose by 14% YoY to Rs 17,810 crore, according to the exchange filing.
In terms of assets, the company’s assets under management (AUM) reached Rs 4.8 lakh crore, reflecting a significant 15% growth compared to the same period last year.
The value of new business (VoNB) was reported at Rs 1,090 crore, marking a 12% YoY increase. SBI Life’s MD and CEO Amit Jhingran noted a healthy shift in its product mix during Q1, with a greater emphasis on protection and guaranteed non-par savings products.
He pointed out that the growth in new business sum assured signifies increasing customer awareness regarding financial security.
Jhingran also highlighted the company’s progress in key customer retention metrics, such as the 13th and 61st-month persistency ratios, indicating stronger customer relationships and enhanced business quality.
Following the earnings announcement, SBI Life shares slightly increased on Thursday, closing at 0.31% up at Rs 1,814.40 per share on the Bombay Stock Exchange (BSE).
Point of View
SBI Life’s substantial profit growth reflects not only its robust business model but also highlights the increasing demand for financial security among consumers. The company’s focus on renewal premiums and customer retention metrics indicates a strategic approach to maintaining its market position.
NationPress
27/07/2025
Frequently Asked Questions
What factors contributed to SBI Life's profit growth?
SBI Life's profit growth can be attributed to a significant increase in net premium income, robust renewal premiums, and a strategic focus on protection and non-par savings products.
How has the first-year premium performed?
The first-year premium for Q1 FY26 was approximately Rs 35,390 crore, showing an increase compared to Rs 31,460 crore in Q1 FY25.
What is the significance of renewal premiums for SBI Life?
Renewal premiums play a crucial role in SBI Life's business, contributing significantly to its overall income and expected to drive growth in the coming quarters.
How did the company's assets under management change?
SBI Life's assets under management reached Rs 4.8 lakh crore, reflecting a strong 15% growth compared to the previous year.
What are the key customer retention metrics mentioned?
The company highlighted improvements in the 13th and 61st-month persistency ratios, indicating stronger customer relationships.
