SBI Life Insurance, the largest private sector life insurer in India, has announced a 39 percent year-on-year increase in net profit, reaching₹529.42 crore for the July-September quarter of the financial year 2025 (Q2 FY25), compared to₹380.19 crore in the same period last year.
For the first half of the financial year (H1 FY25), the insurer’s net profit totaled₹1,049 crore, reflecting a 38 percent rise from₹760 crore in H1 FY24.
However, the value of new business (VNB)—which represents the present value of expected future profits from new policies sold—decreased by 2.5 percent year-on-year, amounting to ₹1,450 crore in Q2 FY25, down from ₹1,487.4 crore a year earlier. In H1 FY25, VNB increased by 2 percent to ₹2,420 crore, up from ₹2,360 crore in the previous year.
The VNB margin, a key indicator of profitability for life insurance companies, contracted to 26.9 percent in Q2 FY25, compared to 28.4 percent in the same quarter last year. For H1 FY25, the margin stood at 26.8 percent.
New business premiums (NBP) fell by 13.4 percent year-on-year to₹8,700 crore in Q2 FY25, down from₹10,050 crore in the previous year. Conversely, the annualized premium equivalent (APE) experienced a modest increase of 3 percent year-on-year, reaching ₹5,390 crore. APE is calculated as the sum of annualized first-year regular premiums and 10 percent of weighted single premiums and single premium top-ups. The total new business premium for H1 FY25 slipped 3 percent year-on-year to ₹1.57 trillion.
SBI Life’s solvency ratio stood at 204 percent in Q2 FY25, down from 212 percent in the same period last year. The persistency ratio for H1 FY25 for the 13th month improved to 86.4 percent, compared to 85.4 percent in the previous year, while the 61st-month persistency ratio rose to 61.9 percent, up from 57.5 percent.
The company’s assets under management (AUM) increased by 27 percent year-on-year, reaching ₹4.38 trillion.
Shares of SBI Life closed 0.64 percent higher on Wednesday, finishing at ₹1,710.
