SBI Life Insurance Company reported strong financial results for the first quarter, with profit after tax growing 14% year-on-year to ₹5.94 billion. The company also achieved a robust Value of New Business (VoNB) margin of 27.4%, up 62 basis points from the previous year.

Key Financial Highlights

• New business premium stood at ₹72.70 billion, with a private market share of 21.3%
• Individual rated new business premium reached ₹34.70 billion, growing 8% year-on-year
• Gross written premium increased 14% to ₹178.14 billion
• Assets under management (AUM) grew 15% to ₹4.76 trillion
• Solvency ratio maintained at 1.96, well above the regulatory requirement of 1.50

Product Mix and Channel Performance

The company reported a favorable shift in its product mix towards guaranteed non-par savings and protection solutions. The protection segment showed particularly strong growth, increasing 53% on an Annualized Premium Equivalent (APE) basis and contributing 11.7% of total APE.

SBI Life's bancassurance channel, comprising SBI and Regional Rural Banks (RRBs), contributed 58% to the total APE. The agency channel also performed well, with individual rated premium standing at ₹10.88 billion for the quarter.

Operational Efficiency and Customer Metrics

Management Commentary

Amit Jhingran, Managing Director and CEO, stated, "The first quarter has set an optimistic foundation for the year ahead, successfully achieving the desired targets on various key business parameters that we have set for ourselves."

The management indicated they expect to maintain mid-teens growth guidance for the year while focusing on improving product mix toward guaranteed non-par savings and protection solutions.

Future Outlook

SBI Life's strategy moving forward will center on three main areas: innovation, customer centricity, and sustainability. The company aims to enhance digital capabilities, expand reach, strengthen distribution networks, and focus on product development to maintain its leadership position in the market.

With a strong start to the fiscal year and a clear strategic focus, SBI Life appears well-positioned to capitalize on the growing demand for life insurance products in India.

SBI Life Insurance , one of India's leading private life insurers, has reported a robust performance for the first quarter. The company's net profit increased by 14.4% year-on-year to Rs 594.00 crore, up from Rs 520.00 crore in the same period last year.

Key Financial Highlights

• Gross Written Premium (GWP): Rose by 14% to Rs 17,181.00 crore, driven by a 24% growth in renewal premium
• Value of New Business (VoNB): Grew by 12% to Rs 1,090.00 crore
• VoNB Margin: Improved to 27.4% from 26.8% in the previous year's corresponding quarter
• Assets Under Management (AUM): Increased by 15% to Rs 4.76 trillion
• 13th Month Persistency: Improved by 58 basis points to 87.12%

Market Leadership and Business Growth

SBI Life maintained its leadership position in the private sector for Individual Rated Premium (IRP) and Individual New Business Premium (NBP). The company's market share stood at 22.3% for IRP and 25% for NBP in the private sector.

The insurer witnessed significant growth in various segments:

• Individual New Business Sum Assured grew by 73% to Rs 66,630.00 crore
• Protection New Business Premium stood at Rs 980.00 crore
• Renewal Premium increased by 24% to Rs 10,546.00 crore

Product Mix and Distribution Channels

SBI Life's product mix for the quarter (based on APE) was:

The distribution channel mix for the quarter was:

Financial Strength and Solvency

The company maintained a robust solvency ratio of 1.96, well above the regulatory requirement of 1.50. This indicates SBI Life's strong financial position and ability to meet its obligations.

Management Commentary

Amit Jhingran, Managing Director & CEO of SBI Life, stated, "In the first quarter, the Company achieved a favorable shift in our product mix towards protection solutions and guaranteed non-par savings, reflecting evolving customer preferences and our strategic focus. There has been remarkable growth in New Business Sum Assured, mainly due to growing awareness of customers towards financial security and fulfilling dreams of their loved ones."

Market Performance

Following the results announcement, SBI Life's shares rose as much as 2.81% to Rs 1,844.00 before settling 2.45% higher at Rs 1,837.00. The stock has gained 8.52% over the past 12 months and 32.31% year-to-date.

Analyst Outlook

Of the 37 analysts covering SBI Life Insurance, 35 recommend 'buy' and two suggest 'hold'. The average 12-month price target indicates a 14.9% upside potential from the current levels.

SBI Life Insurance's strong quarterly performance, coupled with its market leadership and robust financial indicators, positions the company well for continued growth in the Indian life insurance sector.