Increase in SBI Life Insurance Q1 earnings by 14.4%, reaching ₹594.37 crore, due to a 23.5% growth in renewal premium income
In the first quarter of the financial year 2025-2026 (FY26), SBI Life Insurance has reported a significant growth in net profit, renewal premium, and persistency ratios. This growth is attributed to a strategic focus on renewals, a shift in product mix towards protection and guaranteed non-par savings products, and strong customer relationships.
The insurer's net profit increased by 14.41% year-on-year to ₹594.37 crore, backed by a 23% year-on-year jump in renewal premium. This growth in renewal premium was a key driver of the company's profitability.
SBI Life Insurance has deliberately reduced its reliance on unit-linked insurance plans (ULIPs) by about 400 basis points in Q1. The company has instead emphasised diversified products such as participating, non-participating, and protection policies across agency and bancassurance channels. This shift in product mix supports profitability despite seasonal fluctuations.
This product mix shift corresponds with improved customer retention metrics. The 13th-month persistency ratio rose to 87.12%, while the 61st-month persistency ratio increased to 62.8%. These improvements indicate strengthening customer loyalty and consistent policyholder engagement.
The CEO of SBI Life Insurance, Amit Jhingran, emphasised that the improved persistency and renewal premium growth reflect deeper customer relationships and a favourable change in product demand, particularly towards financial protection-oriented policies.
SBI Life remains confident of sustaining its performance margin guidance of 26–28% for FY26. The company plans to achieve this through disciplined execution and diversified offerings, which are expected to maintain growth momentum despite seasonal and quarterly variances.
As of June 30, 2025, guaranteed non-savings products contributed 19% on individual APE basis for SBI Life Insurance. The company has remained disciplined in aligning its non-par savings product pricing with the market yield, achieving steady and sustainable growth in this segment.
In Q1 FY26, SBI Life Insurance maintained its leadership position in individual rated premium with a 22.3% private market share. Single premium de-grew by 4.08% year-on-year, while the first-year premium rose 12.49%. Individual ULIP new business was at ₹2,740 crore and constituted 55% of the individual new business.
The expansion of distribution partners like brokers and bank partners contributed meaningfully to SBI Life's distribution strength in Q1 FY26. The company's net premium income grew 13.72% year-on-year to ₹17,178.50 crore in the first quarter. However, the solvency ratio during the quarter declined to 1.96.
The statement was published on July 24, 2025.
[1] Source: SBI Life Insurance Q1 FY26 Results Announcement [2] Source: Business Standard, SBI Life Insurance Q1 FY26 Results: Key Highlights [3] Source: Economic Times, SBI Life Insurance Q1 FY26 Results: What's in Store? [4] Source: Moneycontrol, SBI Life Insurance Q1 FY26 Results: What the Numbers Tell Us
- The premium growth and increased persistency ratios in SBI Life Insurance's Q1 FY26 results indicate a strategic focus on the premium subscription industry, with a shift towards financial protection products and improved customer relationships.
- Despite a decline in reliance on unit-linked insurance plans (ULIPs), SBI Life Insurance's diversified product mix, including participating, non-participating, and protection policies, has supported profitability and sustained growth.
- The CEO of SBI Life Insurance, Amit Jhingran, attributes the improved persistency and renewal premium growth to stronger customer relationships and a favorable change in product demand, particularly towards financial protection-oriented policies.
- SBI Life Insurance aims to maintain its growth momentum and achieve profitability margin guidance of 26–28% for FY26 through disciplined execution and diversified offerings in the insurance and finance business sectors.
