Results - Analysis
Margins and persistency improve
SBI Life Insurance Company has recorded slight increase in the net profit to Rs 813.51 crore in the quarter ended March 2025 (Q4FY2025) from Rs 810.80 crore in Q4FY2024. The total premium income has declined 5% to Rs 24,000 crore in Q4FY2025, driven by 24% decline in the new business premium to Rs 9,320 crore. However, the renewal premium collection has jumped 13% to Rs 14,680 crore in Q4FY2025.
APE moved up 2% to Rs 5,450 crore in Q4FY2025. The company has exhibited an improvement in the persistency level with 13th month persistency rising to 87% in Q4FY2025 from 86% in Q4FY2024, while 61st month persistency also rose to 62% from 58%. The value of new business (VNB) galloped 10% to Rs 1,660 crore in Q4FY2025. New business margin for FY2025 stood at 27.80% showing improvement on sequential basis from 26.90% for 9MFY2025, while it reached closer to 28.10% in FY2024. The embedded value surged 21% Rs 70250 crore end March 2025. AUM of the company increased 15% to Rs 448,040 crore end March 2025 from Rs 388,920 crore end March 2024 crore and also moved up from Rs 441,680 crore a quarter ago. Debt-equity mix was 61:39. 94% of the debt investments are in AAA and Sovereign instruments. The consolidated Networth stood at Rs 16,985 crore end March 2025, while the solvency ratio of the company was at 196% end March 2025. Embedded Value per share stood at Rs 701.0 per share at end March 2025. The Company has strong distribution network of 309,034 trained insurance professionals consisting of Agents, CIFs and SPs along with widespread operations with 1,110 offices across country. The Company has diversified distribution network comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing firms, web aggregators and direct business.
Amit Jhingran, MD & CEO of SBI Life stated: FY25 was an exceptional year on every front. Standing at the intersection of regulatory changes, evolving customer needs and digital acceleration, we responded with resilience and conviction. Our team exhibited exceptional agility in adapting to customer needs, innovated boldly to reshape experiences and scaled efficiently to make the benefit of life insurance available to every Indian. I am delighted to share that with a 12% growth in Individual Rated Premium, SBI Life outperformed industry growth of 10.5%. This speaks volumes about the strength and dedication of our teamwork, the trust that customers place in us and the excellence with which we execute our strategy. As SBI Life steps into its 25th year, we honor not just our legacy but the millions of lives that have made this story with us. Together, we continue to weave the fabric of the future of the nation, by enabling individuals pursue their dreams while securing their loved ones.'
'Financial Performance FY2025
Profit after Tax (PAT) grew by 27% to Rs 2413.30 crore for FY25. VoNB increased by 7% to Rs 5950 crore for FY25. VoNB margin stands at 27.8% in FY25. The Company has maintained its leadership position in Individual Rated Premium of Rs 19350 crore with 22.8% private market share in FY25. Individual New Business Premium increased 11% to Rs 26360 crore in FY25. Protection New Business Premium stands at Rs 4100 crore in FY25. Gross Written Premium (GWP) has grew by 4% to Rs 84980 crore in FY25 mainly due to 11% growth in New Business Regular Premium (RP) and 14% growth in Renewal Premium (RP) in FY25. APE channel mix for FY25 is bancassurance channel 61%, agency channel 28% & other channels 11%. Individual NBP of Agency channel has increased by 28% to Rs 7080 crore in FY25 and Individual NBP of Other channel has increased by 22% to Rs 3670 crore in FY25 as compared to same period last year. Total Cost ratio for FY25 is 9.7% against 8.9% for FY24. Commission ratio for FY25 is 4.4% against 4.0% for FY24. Operating Expense ratio for FY25 is 5.3% against 4.9% in FY24. Strong growth in 13th month and 61st month persistency (based on premium considering Regular Premium/ Limited Premium payment under individual category) in FY 25 by 63 bps and 528 bps respectively due to our focus on improving the quality of business and customer retention.| SBI Life Insurance: Results Policyholders Account | ||||||
| ' | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Premium earned (net) | 23860.71 | 25116.47 | -5 | 84059.83 | 80587.10 | 4 |
| Income from Investments | -1040.83 | 10811.70 | PL | 31714.09 | 50366.63 | -37 |
| Other income | 3.62 | 11.75 | -69 | -1.16 | 50.10 | PL |
| Contribution from the Shareholders` account | 1345.91 | 1627.58 | -17 | 1345.91 | 1627.58 | -17 |
| Total Income | 24169.41 | 37567.50 | -36 | 117118.67 | 132631.41 | -12 |
| Commission | 997.83 | 851.39 | 17 | 3418.21 | 3105.10 | 10 |
| Op. expenses related to Insurance business | 1017.28 | 825.05 | 23 | 4811.34 | 4132.11 | 16 |
| Others | 296.75 | 266.17 | 11 | 1094.77 | 928.29 | 18 |
| Benefits paid (Net) | 12528.30 | 14823.33 | -15 | 48901.83 | 43107.43 | 13 |
| Change in valuation of policy liabilities | 7706.00 | 19076.85 | -60 | 55700.13 | 78431.33 | -29 |
| Provision for taxation | 60.02 | 14.78 | 306 | 197.93 | 135.68 | 46 |
| Total Expense | 22606.18 | 35857.57 | -37 | 114124.21 | 129839.94 | -12 |
| PAT | 1563.23 | 1709.93 | -9 | 2994.46 | 2791.47 | 7 |
| Transfer to Shareholders` account | 1947.69 | 2157.26 | -10 | 2739.65 | 2597.65 | 5 |
| SBI Life Insurance: Results Shareholders Account | ||||||
| ' | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Amounts transferred from Policyholders` account | 1947.69 | 2157.26 | -10 | 2739.65 | 2597.65 | 5 |
| Income from investments | 251.32 | 327.02 | -23 | 1115.88 | 1034.06 | 8 |
| Total Income | 2199.01 | 2484.28 | -11 | 3855.53 | 3631.71 | 6 |
| Expenses (apart from Insurance) | 10.40 | 11.78 | -12 | 34.19 | 51.45 | -34 |
| Contribution to policyholders account | 1345.91 | 1627.58 | -17 | 1345.91 | 1627.58 | -17 |
| Others | 2.09 | 8.57 | -76 | -19.24 | 10.57 | LP |
| Total Expenses | 1358.40 | 1647.93 | -18 | 1360.86 | 1689.60 | -19 |
| PBT | 840.61 | 836.35 | 1 | 2494.67 | 1942.11 | 28 |
| Tax | 27.10 | 25.55 | 6 | 81.37 | 48.33 | 68 |
| PAT | 813.51 | 810.80 | 0 | 2413.30 | 1893.78 | 27 |
| EPS (Rs)* | 32.5 | 32.4 | ' | 24.1 | 18.9 | ' |
| Embedded Value (Rs) per share | 701.0 | 581.7 | ' | 701.0 | 581.7 | ' |
| * on current equity of Rs 1002.14 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to Profit | ||||||
| Figures in crore, Source: Capitaline Corporate Database | ||||||
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