SBI Life confident of achieving 26–28% margin for FY26 despite shift away from ULIPs

SBI Life Insurance is confident of maintaining its margin guidance of 26–28% for FY26, despite a strategic shift in its product mix away from unit-linked insurance plans (ULIPs).The company saw ULIP contribution drop by 400 basis points in the first quarter, with the share in the agency channel now below 60%. However, Managing Director and CEO Amit Jhingran said the diversified portfolio and disciplined execution will support profitability.

“It is very difficult to put your finger on any one particular number, because there are seasonal variations also in the sales. So, we will be broadly sticking to our guidance of 26–28%,” Jhingran told CNBC-TV18.

A key feature of the quarter was the continued shift toward non-ULIP products. These include participating, non-participating, and protection policies, which have gained prominence across both the agency and bancassurance channels.
“Our aim in the company is to provide a full bouquet of products for the customer,” Jhingran said. He added that SBI Life will launch a new participating money-back product in August, along with a mid-range protection plan.The June quarter marked a strong start to the financial year for SBI Life, with the insurer reporting a 14% year-on-year rise in net profit to ₹594 crore, supported by robust renewal premiums. Jhingran said performance has been in line with internal targets.

“We have been able to stick to our guidance, and our top line as well as our margins have grown in line with the goals we set at the start of the financial year,” he said.

SBI Life is targeting Annualised Premium Equivalent (APE) growth of 13–14% for the full year (FY26). While the first quarter was slightly below that mark due to a high base last year, Jhingran said he is confident of achieving the company’s goal. He also expects Value of New Business (VNB) growth to remain in line with topline growth, maintaining last year’s momentum.

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