SBI Life Profit Slips as New Business Growth Slows
India’s SBI Life Insurance reported a slight decline in fourth-quarter profit, impacted by rising costs and weaker demand for market-linked products. Net profit fell marginally to ₹8.05 billion for the quarter ended March 31, compared with ₹8.14 billion a year earlier, even as overall premium income showed steady growth.
The insurer’s net premium income rose 16%, supported by higher renewals and single-premium policies. However, operating expenses surged nearly 35%, weighing on profitability. New business growth also slowed significantly, with annualised premium equivalent (APE) sales rising just 5.5% to ₹57.5 billion, down from a stronger 25% growth in the previous quarter amid volatile equity markets.
Despite the slowdown, margins remained at 27.5%, among the highest in the sector, aided by a growing share of protection products. Still, value of new business (VNB) dipped around 2%, reflecting pressure on market-linked offerings. The broader life insurance sector saw mixed trends, with firms like HDFC Life reporting slower growth, while ICICI Prudential Life Insurance posted improved profits.
Pic courtesy: google/ images are subject to copyright
