SBI Life Insurance Q4 sales grow, but misses estimates and margins slip

SBI Life Insurance Company Limited reported a mixed performance for the fourth quarter, with most key metrics coming in below CNBC-TV18 poll estimates despite year-on-year growth in select segments.New business premium rose to ₹11,220 crore, exceeding the poll estimate of ₹10,680 crore and marking a 20.4% increase from ₹9,320 crore a year earlier. Total annualised premium equivalent (APE), however, came in at ₹5,750 crore, lower than the estimated ₹5,896 crore, though still up 5.5% from ₹5,450 crore in the corresponding period last year.

Also read: SBI Life Q3 profit rises marginally on higher premium collections
Value of new business (VNB) stood at ₹1,630 crore, missing the poll projection of ₹1,669 crore and declining 1.8% from ₹1,660 crore year-on-year. The VNB margin remained largely stable at 28.4%, compared with the estimated 28.41%, but contracted from 30.50% in the year-ago period.
Q3 performanceIn the third quarter ended December 31, SBI Life Insurance reported a nearly 5% year-on-year increase in net profit, supported by stronger premium collections. Net profit rose to ₹577 crore from ₹551 crore a year earlier.

Net premium income grew 22% year-on-year to ₹30,245 crore, driven by a 24% rise in one-time premium collections and nearly 21% growth in renewal premiums, indicating steady customer retention.

However, expenses rose sharply, with management expenses increasing over 45% to ₹3,519 crore. This was led by a 28% rise in commissions and a 36.6% increase in employee-related costs.

Shares of SBI Life Insurance closed at ₹1,884.80 on the NSE, down 1.40%.