SBI Life Insurance navigated a challenging FY26 with notable resilience. The insurer reported New Business Premium (NBP) growth of 20% YoY to Rs 42,550 crore, while maintaining its VNB margin at 27.5% — at the upper end of the 26-28% guided range. Excluding GST impact, the underlying VNB margin would have been approximately 29%.
Growth Drivers
The growth was broad-based across segments. Group savings surged 55% YoY to Rs 8,480 crore, annuity premiums grew 34% to Rs 7,030 crore, and the par segment posted exceptional 123% growth to Rs 1,670 crore. Individual protection grew a healthy 23%, reflecting the company's focus on protection-oriented products.
Gross Written Premium (GWP) crossed the Rs 1 lakh crore milestone at Rs 1,01,290 crore, up 19%. Renewal premium grew 19% to Rs 58,730 crore, now constituting 58% of GWP and providing a stable earnings base.
Margin and Profitability
Value of New Business (VNB) grew 12% to Rs 6,670 crore, with VNB margin holding steady at 27.5%. The Indian Embedded Value (IEV) increased 15% to Rs 80,790 crore, while operating RoEV stood at a healthy 19.7%. PAT grew a modest 2% to Rs 2,470 crore.
The expense of management ratio increased to 6.1% from 5.3%, and the total cost ratio to 10.6% from 9.7%, driven by GST on commissions and investments in distribution expansion. However, persistency improved, with 13th-month persistency rising 53 bps to 87.9%.
Distribution and Product Mix
SBI Life's banca channel remains the anchor at ~60% of APE, with SBI and RRB bancassurance contributing Rs 14,120 crore in individual APE (+11% YoY). The agency channel is a strategic focus, with APE growing 15% to Rs 6,860 crore supported by the addition of ~1.2 lakh agents and 120 new branches.
Sources: SBI Life Press Release (April 22, 2026), ICICI Direct Research (April 23, 2026), Angel One (April 22, 2026)