SBI Life Insurance Q4 Profit Flat as Group Insurance Premiums Slow

SBI Life Insurance reported a marginal 0.3% increase in net profit for the fourth quarter ending March 31, reaching 8.14 billion rupees, amid a slowdown in its group insurance segment. The decline in group insurance premiums, attributed to intensifying competition, led to a 5% decrease in overall net premium income, with single premiums dropping sharply while first-year premiums grew moderately.

The company saw a 10% rise in its value of new business (VNB), an important profitability metric, while annualised premium equivalent (APE) sales increased by 2%. Market-linked insurance plans, which made up 64% of the product mix, faced reduced demand due to stock market volatility, impacting VNB margin which slightly contracted to 27.8%. Peer companies ICICI Prudential Life and HDFC Life Insurance posted profit growth driven by their group insurance sectors, highlighting competitive pressures in the market.