SBI Life rallies after Q4 PAT rises to Rs 814 crore

SBI Life Insurance Company jumped 4.48% to Rs 1,681 after the company's net profit rose marginally to Rs 813.51 crore in Q4 FY25 as against Rs 810.80 crore posted in Q4 FY24.

However, total income dropped 35.66% YoY to Rs 24,169.41 crore in the quarter ended 31 March 2025.

On a sequential basis, the company's net profit and revenue jumped by 47.69% and 30.34%, respectively, compared to Q3 FY25.

The life insurer's net premium income declined 4.99% YoY to Rs 23,860.71 crore in Q4 FY25.

However, the company reported a loss of Rs 1,040.83 crore from investments in the March quarter of FY25, compared to an investment income of Rs 10,811.70 crore in the same period of FY24.

On a full-year basis, the company's net profit jumped by 27.43% to Rs 2,413.30 crore despite an 11.69% decline in total income to Rs 1,17,118.67 crore in FY25 over FY24.

The companys net worth grew by 14% YoY to Rs 16,980 crore in FY25 as compared to Rs 14,910 crore recorded in FY24.

SBI Life reported a robust solvency ratio of 1.96 as on 31 March 2025 as against the regulatory requirement of 1.50 indicating strong financial position of the company.

Assets under management (AuM) grew by 15% YoY to Rs 4,48,040 crore as of 31 March 2025, with a debt-equity mix of 61:39. Over 94% of the debt investments are in AAA and sovereign instruments.

Value of new business (VoNB) increased by 7% YoY to Rs 5,950 crore for FY25. VoNB margin reduced to 27.8% in FY25 as against 28.1% recorded in FY24.

New business premium (NBP) slipped 7% YoY to Rs 35,580 crore in FY25.

Gross written premium (GWP) grew 4% to 84,980 crore in FY25, mainly due to 11% growth in new business regular premium (RP) and 14% growth in renewal premium (RP) in FY25.

The companys total cost ratio for FY25 was at 9.7% as compared with 8.9% reported in FY24. The commission ratio was at 4.4% in FY25 as against 4% in FY24. Operating expense ratio for FY25 was 5.3% as against 4.9% in FY24.

Annualized premium equivalent (APE) stood at Rs 21,420 crore, registering growth of 9% YoY.

SBI Life recorded strong growth in 13th-month and 61st-month persistency (based on premium considering regular premium/limited premium payment under the individual category) in FY25 by 63 bps and 528 bps respectively, due to our focus on improving the quality of business and customer retention.

SBI Life Insurance Company is carrying on the business of life insurance. The company's life insurance business comprises individual life and group business, including participating, non-participating, pension, group gratuity, group leave encashment, group superannuation, group immediate annuity, unit-linked insurance products, variable insurance products, health, and microinsurance. Some of these policies have riders such as accident and disability benefit, level term, and critical illness.

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