SBI Life Q4 Profit Slightly Below Estimates; UBS Maintains Buy Rating

SBI Life Insurance reported a consolidated net profit of Rs 814 crore in Q4, slightly above the previous year's Rs 811 crore but below analyst estimates of Rs 1,038 crore. Net premium income declined 5% year-on-year to Rs 23,861 crore, reflecting shifts in product mix and channel performance. Despite missing profit estimates, UBS upheld a 'buy' rating and raised the target price based on higher-than-expected value of new business, noting growth stabilization in the bancassurance channel and challenges in agency channel expansion.

The company's solvency ratio stood at 1.96%, with improved persistency ratios, indicating enhanced policyholder retention. Maintaining a leadership role, SBI Life held 22.8% of the private market share in individual rated premiums for fiscal 2025. Shares rose to a six-month high, significantly outperforming broader market indices, supported by a strong analyst buy consensus and improved premium metrics.

Market activity showed notable trading volume and positive momentum, as reflected in RSI levels. Overall, SBI Life demonstrates stable margin performance, channel diversification needs, and firm market positioning, relevant for stakeholders monitoring sector growth trends and regulatory impacts in the Indian insurance landscape.