SBI Life Insurance Q2 results: Net profit rises 39% to Rs 529 crore

In Q2 FY25, the solvency ratio of SBI Life stood at 204 per cent, compared to 212 per cent in the year-ago period

SBI Life Insurance, the largest private sector life insurer, reported a 39 per cent year-on-year (YoY) rise in net profit to Rs 529.42 crore in July-September quarter of financial year 2025 (Q2FY25) from Rs 380.19 crore in the corresponding period a year ago.

 

In April-September period (H1FY25), its net profit stood at Rs 1,049 crore, up 38 per cent YoY, compared to Rs 760 crore in H1FY24.

 

Value of new business (VNB) -- present value of the future profits that are expected to come from new policies sold during a given year -- of the insurer dropped by 2.5 per cent YoY to Rs 1,450 crore in Q2 against Rs 1,487.4 crore in the year-ago period. In H1FY25, VNB of the insurer stood at Rs 2,420 crore, up 2 per cent from Rs 2,360 crore in the year ago period.

 

The insurer’s VNB margin, a measure of profitability of life insurance companies, contracted to 26.9 per cent in Q2FY25, compared to 28.4 per cent in the corresponding period a year ago. In H1, its margin stood at 26.8 per cent.  

 

Its new business premiums (NBP) dropped by 13.4 per cent YoY to Rs 8,700 crore in Q2FY25 against Rs 10,050 crore in the year-ago period. Its annualised premium equivalent (APE) rose marginally by 3 per cent YoY to Rs 5,390 crore. APE is the sum of annualised first year regular premiums and 10 per cent weighted single premiums and single premium top-ups.

 

The total new business premium slipped 3 per cent YoY to Rs 1.57 trillion in H1 FY25.

 

In Q2FY25, the solvency ratio of SBI Life is posted at 204 per cent as compared to 212 per cent in the year ago period.

 

The persistency ratio of the insurer in H1 FY25 for 13th month persistency ratio stood at 86.4 per cent compared to 85.4 per cent in H1 FY25. Meanwhile, the 61st month persistency ratio was at 61.9 per cent in the quarter under review as compared to 57,5 per cent in the year ago period.

 

Assets under Management (AUM) of the company stands at Rs 4.38 trillion, up 27 per cent YoY.

 

SBI Life’s shares closed 0.64 per cent up on Wednesday at Rs 1,710.