SBI Life Insurance Q1 Beats Expectations with Strong VNB Growth

SBI Life Insurance Company reported stronger-than-expected financial results for the April-June quarter, driven by robust growth in value of new business (VNB) and an overall uptick in performance metrics. Net premium income increased by 13.7% to Rs 17,179 crore, while net profit rose 14.4% to Rs 594 crore. The VNB grew 12% year-over-year to Rs 1,090 crore, supported by higher margins, with first-quarter VNB margin improving by 60 basis points year-over-year.

Despite a modest 9% rise in annual premium equivalent, SBI Life experienced mixed growth across segments, with stronger group protection offsetting weaker Unit Linked Insurance Plan and group savings growth. Bancassurance posted stable 7% growth in Q1, while agency channel growth was flat. Analysts from Jefferies and Macquarie adjusted their outlooks accordingly, with Jefferies maintaining a Buy rating and Macquarie holding a Neutral stance.

Market confidence remains positive with Morgan Stanley naming SBI Life a top pick among large-cap non-bank financials, citing its attractive risk-reward balance and regulatory stability. Projected growth includes a 15% compound annual growth rate in VNB from FY2025-28 and a 17% return on embedded value by FY2026, highlighting long-term growth potential amid evolving insurance industry dynamics in India.