SBI Life Insurance Company Limited Q1 FY27 Earnings Conference Call Summary

Financial Performance Highlights

  • New Business Premium: ₹89.1 billion, growth of 23% YoY
  • Individual Rated Premium: ₹39.7 billion, growth of 14% YoY
  • Gross Written Premium: ₹212.9 billion, growth of 20% YoY
  • Profit After Tax: ₹7.2 billion, growth of 22% YoY
  • Value of New Business (VoNB): ₹14.1 billion, growth of 29% YoY
  • VoNB Margin: 26.2% for Q1 FY27 (would have been 27.4% excluding GST impact)
  • Embedded Value: ₹852.9 billion as of June 30, 2026, growth of 15% YoY
  • Assets Under Management: ₹5.2 trillion, growth of 10% YoY
  • Solvency Ratio: 1.96 (regulatory requirement: 1.50)

Premium Breakdown

  • Individual APE: ₹39.9 billion, growth of 14% YoY
  • Group New Business Premium: ₹32.9 billion, growth of 41% YoY, contributing 37% to total new business premium
  • Renewal Premium: ₹123.8 billion, growth of 17% YoY, accounting for 58% of gross written premium
  • Total APE: ₹53.8 billion, growth of 36% YoY

Market Share Position

  • Private Market Share: 20.5% in new business premium, 22.2% in individual rated premium
  • Total Market Share: 8.2% in new business premium, 15.2% in individual rated premium
  • 3-year CAGR: Individual Rated Premium growth of 14% vs industry CAGR of 13%

Product Performance

  • Participating Products: Individual APE of ₹2.4 billion, growth of 35%; Sum assured growth of 81%
  • Guaranteed Non-Par Savings: ₹9.7 billion, growth of 27%
  • ULIP: ₹24.5 billion, contributing 61% of individual APE (vs 65% in Q1 FY26)
  • Individual Protection APE: ₹1.9 billion, growth of 18% YoY
  • Pure Protection: Growth of 41% on individual APE basis
  • Group Protection APE: ₹12.3 billion, growth of 313% YoY
  • Annuity and Pension: New business of ₹18.9 billion during the quarter

Distribution Channel Performance

  • Bancassurance (SBI & RRBs): Contributes 47% to total APE; Individual APE of ₹24.5 billion, growth of 10%
  • SBI Branch Productivity: ₹4.1 million per branch, growth of 7%
  • Agency Channel: Individual APE of ₹13.1 billion, growth of 20% YoY; Agent productivity at ₹2 lakh
  • Other Channels: Growth of 160%, contributing 28% of total APE
  • Other Banks: Growth of 31% on total APE basis (19% on Individual NBP basis)

Operational Metrics

  • New Policies Sold: 4.25 lakh policies covering 8.7 million lives
  • Sum Assured Growth: Individual new business sum assured grew 46% YoY; Group new business sum assured grew 265% YoY
  • Rider Attachment: 39% of individual sum assured; 45-50% of policies sold with rider attachment
  • Persistency: 13th month at 87.7% (+61 bps YoY); 49th month at 69.1% (+68 bps YoY)
  • Claim Settlement Ratio: 98.8% for death claims
  • Misselling Ratio: 0.02% (lowest in private industry)
  • Digital Processing: 99.9% individual proposals submitted digitally; 67% processed through automated underwriting

Expense Metrics

  • Opex Ratio: 7.7% for Q1 FY27 (vs 6.3% in Q1 FY26)
  • Total Cost Ratio: 12.0% for Q1 FY27 (vs 10.8% in Q1 FY26)
  • GST Impact: ₹2.3 billion for the quarter

Management Guidance & Commentary

  • Maintained FY27 guidance: 14-15% Individual Rated Premium growth and 26-28% VoNB margin
  • Expect margin improvement in subsequent quarters as product mix normalizes
  • Group business contribution higher in Q1, affecting overall margins temporarily
  • Focus on shifting from ROP to pure protection products (non-ROP improved to 32% from 27%)
  • Planning to launch regular pay deferred annuity product in next quarter
  • New corporate agency tie-up with J&K Bank, business to start in current quarter

Q&A Key Points

  • GTI Business: Higher group business contribution in Q1 affected margins; considered one-year renewable contract treated as new business
  • GST Impact: Expected to continue for 2.5 months in Q2 FY27 (until September 22 anniversary)
  • Expense Increase: Due to higher stamp duty from increased sum assured and labor code impact
  • Persistency Dip: 61st month affected by COVID cohort, expected to normalize by year-end
  • Credit Protect: Flat growth YoY but expected uptick in coming quarters
  • Product Mix: Target to maintain current mix (62% ULIP, 38% non-ULIP) for FY27

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