Earnings● Neutral
SBI Life Q1 PAT Up 22%, APE Surges 36% on Protection Boom
Protection premium doubles, VNB up 29%, but margin compresses to 26.2% on mix shift and GST 2.0. Cost ratio rises to 12% as distribution spend grows. Solvency remains strong at 1.96.
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SBI Life Insurance Company reported a 22% rise in profit after tax to ₹720 crore for the quarter ended June 30, 2026, as new business momentum accelerated sharply. The private insurer's Annualised Premium Equivalent jumped 36% to ₹5,380 crore, driven by strong growth across protection and non-par savings segments.
Gross written premium rose 20% to ₹21,290 crore. New business premium grew 23% to ₹8,190 crore, while renewal premium climbed 17% to ₹12,380 crore. The sharpest growth came from the protection segment, where new business premium more than doubled to ₹1,960 crore, a 100% year-on-year increase. Group protection, which rose 116% to ₹1,760 crore, led that surge. Total new business sum assured expanded 211% to ₹8,50,030 crore, reflecting the company's push toward higher-coverage products.
Value of New Business, a key measure of profitability on new policies, grew 29% to ₹1,410 crore. The VNB margin stood at 26.2%, down from 27.4% in the same quarter last year. The company attributed the compression to changes in business mix, operating assumptions, and the impact of GST 2.0. Indian Embedded Value rose 15% to ₹85,290 crore.