SBI Life Q1FY25 results: Net profit increases 34% to Rs 519.5 crore

Private insurer SBI Life on Wednesday reported a 34.3 per cent year-on-year (Y-o-Y) increase in net profit to Rs 519.52 crore during the April-June quarter of FY25 (Q1FY25), backed by healthy growth in premiums.

Its value of new business (VNB) increased 12 per cent Y-o-Y to Rs 970 crore in Q1FY25 as against Rs 870 crore in the corresponding period a year ago. VNB is the present value of all future profits to shareholders measured at the time of writing the new business contract.

However, the company reported a contraction in VNB margin at 26.8 per cent in Q1FY25 compared to 28.8 per cent in the corresponding period last year. VNB margins are a measure of profitability for life insurance companies.

Meanwhile, the company’s new business premiums grew by 13 per cent Y-o-Y to Rs 7,030 crore in Q1FY25 against Rs 6,210 crore in the year-ago period. Its annualised premium equivalent (APE) was up 20 per cent Y-o-Y to Rs 3,640 crore during this period. APE is the sum of annualised first-year regular premiums and 10 per cent weighted single premiums.

The Unit Linked Insurance Plans (Ulips) accounted for 61 per cent of the overall product mix compared to 53 per cent in the same period last year. The share of participating products stood at 4 per cent. Non-participating (non-par) accounted for 35 per cent of the overall product mix, higher than 40 per cent in Q1FY24.

In Q1FY25, the solvency ratio of SBI Life dropped to 201 per cent from 215 per cent in the year-ago period. The persistency ratio of the insurer remained healthy, with a 13th-month persistency ratio at 83.61 per cent, while the 61st-month persistency ratio was at 59.32 per cent in the quarter under review.