SBI Life Q4 Net Profit Falls 5.1% YoY

SBI Life Q4FY25 Premium Income Falls 5.1%; Annual Profits Rise on Renewal Gains

SBI Life Insurance Company Ltd. reported a 5.1 percent year-on-year decline in total premium income for the fourth quarter of FY25, standing at Rs 23,860 crore, according to the company’s financial disclosures released on April 24. While the quarter reflected mixed performance metrics across business segments, the full-year earnings showcased growth driven by rising renewal collections and disciplined expense management.

Mixed Trends in Quarterly Premium Flows

During Q4FY25, first-year premiums increased 7.3 percent to Rs 4,858.69 crore, suggesting consistent new business traction. Renewal premiums surged 12.9 percent to Rs 14,680 crore, underscoring continued customer retention strength. However, single premium collections saw a sharp contraction, dropping to Rs 4,462.55 crore from Rs 7,709.56 crore a year earlier. The decline in single premium inflows led to the overall drop in quarterly premium income.

Annual Metrics Reflect Stronger Underlying Performance

For the full fiscal year ended March 31, 2025, SBI Life posted a 4.3 percent rise in total premium income, reaching Rs 84,059.83 crore. This was underpinned by a 10.9 percent increase in renewal premiums, which rose to Rs 49,407.79 crore. In contrast, single premiums declined 22 percent, continuing the trend observed in the quarterly data.

Shareholders’ profit before tax for FY25 improved to Rs 1,105.83 crore, up from Rs 947.59 crore in FY24, signaling solid financial discipline and portfolio maturity despite market headwinds.

Solvency, Persistency, and Operational Efficiency

SBI Life maintained a solvency ratio of 1.96x as of March 31, 2025, aligning with regulatory benchmarks and ensuring capital adequacy. The expense management ratio stood at 8.40 percent for the quarter, reflecting continued investments in digital transformation and strengthening of distribution channels.

13-month persistency improved to 86.64 percent, compared to 85.76 percent in the same quarter last year, pointing to higher customer retention and sustained policyholder engagement.

The Value of New Business (VNB), a key profitability metric in the life insurance sector, was reported at Rs 59,500 crore for FY25, emphasizing the long-term value creation through new business underwriting.

Highlights

• Q4FY25 premium income down 5.1% to Rs 23,860 crore

• Single premiums fall sharply, while renewal and first-year premiums rise

• Full-year premium income up 4.3%, driven by 10.9% growth in renewal premiums

• FY25 profit before tax increases to Rs 1,105.83 crore

• Solvency ratio at 1.96x, expense ratio at 8.40%, 13-month persistency at 86.64%

• Value of New Business for FY25 at Rs 59,500 crore