SBI Life Insurance's Q3FY26 results: Net profit rises 5% to ₹577 crore

SBI Life Insurance posted a 5% rise in Q3FY26 net profit to ₹577 crore, supported by strong premium growth but weighed down by higher expenses and labour code provisioning

SBI Life Insurance on Wednesday reported a nearly 5 per cent year-on-year (Y-o-Y) increase in net profit at ₹577 crore in the third quarter of 2025-26 (Q3FY26), weighed down by an increase in expenses, although premium income grew robustly. The profit in Q3FY25 had stood ₹Rs 551 crore.

 

Net premium income of the insurer grew by 21.8 per cent Y-o-Y to ₹30,245.32 crore from ₹24,828 crore in the year-ago period. Annualised premium equivalent (APE) of the insurer grew 24 per cent Y-o-Y at ₹6,940 crore. APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums.

 

 

Expenses of the company increased 45.6 per cent Y-o-Y to ₹3,519 crore in Q3FY26. Net commissions were up by 28 per cent Y-o-Y at ₹1,610 crore from Rs 1,258 crore in the corresponding period last year. 

 

SBI Life has made an incremental provision of ₹135.49 crore on account of the Centre’s new labour Codes. The resulting incremental charge has been recognised in the revenue account for the quarter and nine-month period ended December 31, 2025.

 

“The company continues to monitor developments related to the labour Codes and will assess any further impact on the measurement of employee benefits liabilities as and when they arise,” the insurer said.

 

The value of new business (VNB) of the insurer grew 22.46 per cent Y-o-Y to ₹2,290 crore. VNB margin improved to 26.63 per cent in Q3FY26 compared to 26.94 per cent in Q3FY25.

 

Amit Jhingran, managing director and chief executive officer (MD & CEO) of SBI Life said: “The growth (in Q3) was primarily volume-driven, supported by an increase in the number of individual policies sold during the quarter. The company’s product mix during 9M FY26 (first nine months of FY26) reflected evolving customer preferences, with contributions from ULIPs (unit-linked insurance plans), participating and non-participating savings products. The protection segment recorded strong year-on-year growth in premium and sum assured during the period.”

 

The share of ULIPs in APE slipped to 62 per cent in 9M FY26 from 67 per cent in 9M FY25. The share of participating (par) products rose to 7 per cent from 4 per cent and the share of non-participating products (non-par) rose to 31 per cent from 29 per cent.

 

In Q3FY26, the solvency ratio of SBI Life stood at 191 per cent against 204 per cent in the year-ago period. The 13th month persistency ratio was up at 83.99 per cent as against 82.67 per cent; while the 61st month ratio stood at 55.07 per cent in the quarter under review as opposed to 61.63 per cent.