SBI Life Q4 results: Net profit flat at ₹813 cr, net premium income down 5%

SBI Life Insurance’s net profit growth for the January–March quarter was flat at ₹813.51 crore as compared to ₹810.8 crore in the year-ago period, owing to a surge in expenses and weak premium growth.

 

The net premium income of the life insurer slipped by 5 per cent year-on-year (Y-o-Y) to ₹23,860.71 crore in the reporting quarter. The annualised premium equivalent (APE) of the insurer, though, rose marginally by 2.25 per cent Y-o-Y to ₹5,450 crore.

 

Value of new business (VNB)—the measure of profitability for life insurers—increased by 9.9 per cent Y-o-Y to ₹1,660 crore in Q4 FY25. The VNB margin of the insurer stood at 30.46 per cent, as against 28.33 per cent in the year-ago quarter. 

 

The insurer reported a loss of ₹1,040.8 crore in investment income in Q4 FY25, as against a profit of ₹10,811.7 crore in the same period last year. For FY25, total investment income halved to ₹32,860 crore from ₹51,410 crore in FY24.

 

The expenses of management (EoM) of the company expanded by 20.2 per cent Y-o-Y to ₹2,015.11 crore, with net commission slipping marginally to ₹997.83 crore. The EoM ratio of the life insurer was at 8.4 per cent, as against 6.64 per cent in Q4 FY24.

 

The solvency ratio of SBI Life was flat at 1.96 per cent compared to Q4 FY24.