SBI Life Insurance registers New Business Premium of Rs. 35,577 crores for the year ended on 31st March, 2025.
FinTech BizNews Service
Mumbai, April 24, 2025: The Board of Directors of SBI Life Insurance Company Limited approved and adopted its audited financial results for the quarter and year ended March 31, 2025, following its meeting on Thursday, April 24, 2025 in Mumbai.
The Company’s 3 key strengths – a highly effective distribution network, one of best operating efficiency, and customer centricity has resulted in registering a growth better than industry on Individual Rated New Premium basis.
Performance for the year ended March 31, 2025
Private Market leadership in Individual Rated Premium of Rs 193.5 billion with 22.8% market share
Annualized Premium Equivalent (APE) stands at Rs 214.2 billion with growth of 9%
Individual New Business Sum Assured stands at Rs 2,769 billion with 43% growth
Improvement in 13M & 61M persistency by 63 bps & 528 bps respectively6
Value of New Business (VoNB) stands at Rs 59.5 billion with growth of 7%
VoNB Margin stands at 27.8%
Indian Embedded value (IEV) stands at Rs 702.5 billion with 21% growth
Profit After Tax (PAT) stands at Rs 24.1 billion with 27% growth
Operating Return on Embedded Value stands at 20.2%
Assets under Management stands at Rs 4.5 trillion with 15% growth
Robust Solvency ratio of 1.96
Managing Director & CEO’s Statement:
Amit Jhingran, MD & CEO of SBI Life stated: FY25 was an exceptional year on every front. Standing at the intersection of regulatory changes, evolving customer needs and digital acceleration, we responded with resilience and conviction. Our team exhibited exceptional agility in adapting to customer needs, innovated boldly to reshape experiences and scaled efficiently to make the benefit of life insurance available to every Indian.
I am delighted to share that with a 12% growth in Individual Rated Premium, SBI Life outperformed industry growth of 10.5%. This speaks volumes about the strength and dedication of our teamwork, the trust that customers place in us and the excellence with which we execute our strategy.
As SBI Life steps into its 25th year, we honor not just our legacy but the millions of lives that have made this story with us. Together, we continue to weave the fabric of the future of the nation, by enabling individuals pursue their dreams while securing their loved ones.
Business growth and market share
The Company has maintained its leadership position in Individual Rated Premium of Rs 193.5 billion with 22.8% private market share in FY 25.
Growth in Individual New Business Premium by 11% to Rs 263.6 billion in FY 25.
Protection New Business Premium stands at Rs 41.0 billion in FY 25.
Gross Written Premium (GWP) has grew by 4% to Rs 849.8 billion in FY 25 mainly due to 11% growth in New Business Regular Premium (RP) and 14% growth in Renewal Premium (RP) in FY 25.
Distribution network
The Company has strong distribution network of 309,034 trained insurance professionals consisting of Agents, CIFs and SPs along with widespread operations with 1,110 offices across country.
The Company has diversified distribution network comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing firms, web aggregators and direct business.
APE channel mix for FY 25 is bancassurance channel 61%, agency channel 28% & other channels 11%.
Individual NBP of Agency channel has increased by 28% to Rs 70.8 billion in FY 25 and Individual NBP of Other channel has increased by 22% to Rs 36.7 billion in FY 25 as compared to last year.
Cost Efficiency
Total Cost ratio for FY 25 is 9.7% vis-à-vis 8.9% for FY 24
Commission ratio for FY 25 is 4.4% vis-à-vis 4.0% for FY 24
Operating Expense ratio for FY 25 is 5.3% vis-à-vis 4.9% in FY 24
Profitability
Profit after Tax (PAT) grew by 27% to Rs 24.1 billion for FY 25.
VoNB increased by 7% to Rs 59.5 billion for FY 25.
VoNB margin stands at 27.8% in FY 25.
Persistency
Strong growth in 13th month and 61st month persistency (based on premium considering Regular Premium/Limited Premium payment under individual category) in FY 25 by 63 bps and 528 bps respectively due to our focus on improving the quality of business and customer retention.
Assets under Management
AuM grew by 15% from Rs 3,889.2 billion as on March 31, 2024 to Rs 4,480.4 billion as on March 31, 2025 with debt-equity mix of 61:39. 94% of the debt investments are in AAA and Sovereign instruments.
Financial position
The Company’s net worth increased by 14% from Rs 149.1 billion as on March 31, 2024 to Rs 169.8 billion as on March 31, 2025.
Robust solvency ratio of 1.96 as on March 31, 2025 as against the regulatory requirement of 1.50
indicating strong financial position of the Company.
Definitions, abbreviations and explanatory notes
New Business Premium (NBP): Insurance premium that is due in the first policy year of a life insurance contract or a single lump sum payment from the policyholder.
Annualized Premium Equivalent (APE): The sum of annualized first year premiums on regular premium policies, and 10% of single premiums, written by the Company during the fiscal year from both retail and group customers.
Individual New Business Premium: Insurance premium that is due in the first policy year of an individual life insurance contract.
Individual Rated Premium (IRP): New business premiums written by the Company under individual
products and weighted at the rate of 10% for single premiums.
Renewal Premium: Life insurance premiums falling due in the years subsequent to the first year of the policy.
Embedded Value: The measure of the consolidated value of shareholders’ interest in the covered life insurance business, which is all life insurance business written by the Company since inception and in force as on the valuation date (including lapsed business which have the potential of getting revived). The Embedded Value of the Company has been determined on the basis of the Indian Embedded Value (IEV)
Methodology calculated as per APS 10 set forth by the Institute of Actuaries of India (IAI).
Value of New Business (VoNB): VoNB is the present value of expected future earnings from new policies written during a specified period and it reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.
Value of New Business Margin / VoNB Margin: VoNB Margin is the ratio of VoNB to New Business
Annualized Premium Equivalent for a specified period and is a measure of the expected profitability of new business.
Solvency Ratio: Solvency ratio means ratio of the amount of Available Solvency Margin to the amount of Required Solvency Margin as specified in form-KT-3 of IRDAI Actuarial Report and Abstracts for Life Insurance Business Regulations.
Net worth: Net worth represents the shareholders’ funds and is computed as sum of share capital and reserves (including share premium but excluding employee stock options outstanding account), share application money and fair value change account net of debit balance in profit and loss account.
