SBI Life Insurance has announced a 27% year-on-year (YoY) increase in its profit for the financial year ending March 31, 2025. The company’s performance highlights steady growth in premiums and a strong focus on protection products.
Strong Profit Growth Despite Decline in New Business Premiums
The company posted a profit after tax of $289.56 million (₹2,413 crores) for FY 2025, marking a significant 27% YoY growth. However, the New Business Premium stood at $426.92 million (₹35,577 crores), showing a decrease from the previous year’s $458.86 million (₹38,238 crores). Despite this, regular premiums grew by 11% YoY, signaling positive momentum in core offerings.
Focus on Protection Products Drives Growth
SBI Life continued to focus on its protection product segment. The protection new business premium reached $49.14 million (₹4,095 crores), while the protection individual new business premium reached $9.52 million (₹793 crores). This focus helped the company strengthen its position in the market.
Impressive Individual New Business Premium Performance
The Individual New Business Premium grew by 11% YoY, reaching $316.32 million (₹26,360 crores). This growth, along with a market-leading position in Individual Rated Premium, helped SBI Life achieve a significant milestone. The company recorded $232.25 million (₹19,354 crores) in Individual Rated Premium, holding a 22.8% market share.
Other Key Financial Indicators
Other important financial indicators showed positive trends. The Annualized Premium Equivalent (APE) grew by 9%, reaching $257.00 million (₹21,417 crores). The Individual New Business sum assured increased by 43%, reaching $3,323.02 million (₹2,76,918 crores). The company’s Value of New Business (VoNB) rose by 7%, reaching $71.45 million (₹5,954 crores), with a VoNB margin of 27.8%.
Outlook and Market Position
While the decrease in New Business Premium may raise some concerns, SBI Life’s robust growth in profit, premiums, and new business metrics underscores the company’s resilience. The latest news indicates that SBI Life’s strategy of focusing on high-growth areas like protection products has been effective, positioning it strongly in the market.
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