SBI Life posts 22% PAT growth in Q1 FY27, APE surges 36%

Assets under Management rose 10% to ₹5,24,850 crore | Photo Credit: Dragon Claws

SBI Life Insurance posted a 22% year‑on‑year increase in after‑tax profit, reaching ₹720 crore for the quarter ending June 30 2026, driven by a sharp acceleration in new‑business activity compared with the prior year.

Annualised Premium Equivalent (APE) surged 36% to ₹5,380 crore in Q1 FY27, buoyed by robust gains in protection and non‑par savings lines. Gross written premium climbed 20% to ₹21,290 crore, with new‑business premium up 23% to ₹8,190 crore and renewal premium rising 17% to ₹12,380 crore.

The protection segment showed the strongest expansion, with new‑business premium more than doubling to ₹1,960 crore – a 100% YoY rise. Group protection led the charge, increasing 116% to ₹1,760 crore. Overall new‑business sum assured jumped 211% to ₹8,50,030 crore, underscoring the firm’s focus on higher‑coverage offerings.

Value of New Business (VoNB), a gauge of profitability for newly written policies, increased 29% to ₹1,410 crore. The VoNB margin slipped to 26.2% from 27.4% in Q1 FY26, a decline linked to shifts in product mix, revised operating assumptions, and the introduction of GST 2.0. Indian Embedded Value climbed 15% to ₹85,290 crore.

Assets under Management (AUM) expanded 10% to ₹5,24,850 crore as of June 30 2026, maintaining a 60:40 debt‑to‑equity split. About 94% of the debt portfolio resides in AAA‑rated or sovereign securities. Net worth rose 13% to ₹20,110 crore, while the solvency ratio held steady at 1.96, comfortably above the required 1.50.

Market Leadership

SBI Life maintained its lead in the private sector, commanding a 24.9% share of Individual New Business Premium and a 22.2% share of Individual Rated Premium. The APE channel mix leaned more toward agency and other avenues, with bancassurance accounting for 47%, agency for 25%, and other channels for 28% – the latter jumping 160% YoY as corporate agents and brokers gained ground.

Persistency improved at the 13‑month and 49‑month checkpoints, reaching 87.7% and 69.1% respectively. Conversely, the 61‑month persistency fell to 58.4%, down from 63.6% a year earlier.

The total cost ratio increased to 12.0% from 10.8% in Q1 FY26, while the operating expense ratio rose to 7.7% from 6.3%, reflecting higher spending on distribution and technology. The commission ratio remained unchanged at 4.4%.

Published on July 24, 2026