SBI Life Insurance reported a mixed performance in the March quarter of FY26, with net profit slipping marginally year‑on‑year despite strong premium growth and improving operating efficiency. While Q4 earnings were impacted by muted APE growth and changes in product mix, analysts remain constructive on the insurer’s long‑term outlook, citing a steady shift toward non‑ULIP and protection products, stable margins, and continued investments in agency and digital channels. Leading brokerages like Motilal Oswal and Nuvama have maintained their ‘Buy’ ratings.
Net premium income increased 16 per cent year-on-year to Rs 27,683.8 crore, up from Rs 23,860.7 crore in the same period last year, reflecting strong growth in business volumes.
On a sequential basis, profit after tax jumped to Rs 2,193.8 crore from Rs 427.3 crore in the December quarter, driven by a higher surplus of Rs 2,19,380 lakh in the policyholders’ account, up from Rs 42,729 lakh in Q3.
The transfer to the shareholders’ account rose sharply to Rs 2,36,362 lakh in Q4 from Rs 26,922 lakh in the previous quarter, indicating improved operating performance.
On the balance sheet side, the solvency ratio slipped slightly to 190 per cent from 191 per cent a year earlier, but remained well above the regulatory requirement.
Operationally, gross premium income was Rs 27,683.8 crore in Q4 FY26, down from Rs 30,245.3 crore in Q3 but up from Rs 23,860.7 crore a year earlier, indicating sequential moderation.
Investment income and actuarial adjustments continued to drive earnings volatility, a common feature in the life insurance business. Earnings per share (EPS) stood at Rs 8.02 for the quarter, compared to Rs 5.75 in Q3 and Rs 8.12 in Q4 FY25. Meanwhile, the expense management ratio improved sequentially to 9.05 per cent from 11.56 per cent in Q3, indicating better cost efficiency.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
