India's SBI Life quarterly profit flat, group insurance demand slows

Sbi Life Insurance

24/04/2025 12:35

April 24 (Reuters) - India's SBI Life Insurance Company SBIL.NS posted flat year-on-year fourth-quarter profit on Thursday amid a slowdown in group insurance business.

Profit rose 0.3% to 8.14 billion rupees ($95.5 million) for the quarter ended March 31 from 8.10 billion rupees a year earlier.

Analysts said heightened competition in the group insurance category has affected SBI Life's premiums earned in the segment.

Peers ICICI Prudential Life Insurance ICIR.NS and HDFC Life Insurance HDFL.NS reported a rise in quarterly profit, boosted by their group insurance offerings.

SBI Life's net premium income fell about 5% to 238.61 billion rupees as single premiums dropped nearly 73% while first-year premiums rose about 7%.

The company's value of new business (VNB), or expected profit from new policies - one of the key metrics for insurers - rose 10% year-on-year.

Its annualised premium equivalent (APE) sales, which is the total value of all single- and recurring-premium policies, rose 2% to 54.5 billion rupees, as per a Reuters calculation.

Demand for market or unit-linked insurance plans (ULIP) dropped as India's stock markets underwent a sharp correction.

Market-linked insurance plans, which have a lower profit margin compared to term policies, accounted for 64% of SBI Life's overall product mix by individual APE during the fiscal year, compared with 60% in the previous fiscal year.

VNB margins contracted to 27.8% for the fiscal year from 28.1% a year earlier.

($1 = 85.2640 Indian rupees)

 (Reporting by Shivani Tanna in Bengaluru; Editing by Mrigank Dhaniwala)

 ((ShivaniJayesh.Tanna@thomsonreuters.com;))