SBI Life Insurance Climbs 4% on Robust Core Performance and Positive Brokerage Sentiment

SBI Life Insurance shares surged by over 4% on Friday, 25 April 2025, emerging as one of the top gainers on the Nifty 50 index. The rally followed the company’s March quarter results, underscoring the insurer’s operational resilience and market leadership. The stock is currently trading at ₹1,668.40, reflecting strong investor interest in the wake of the earnings announcement.

Quarterly Snapshot: Mixed Premiums, Strong Fundamentals

SBI Life Insurance reported a marginal rise in net profit to ₹813 crore for Q4 FY25. Total premium income declined 5.1% to ₹23,860 crore, weighed down by a 42% drop in single premiums. However, core metrics remained strong, with first-year premiums up 7.3% to ₹4,859 crore and renewal premiums rising 12.9% to ₹14,680 crore.

For the full year, total premium income grew 4.3% to ₹84,060 crore, driven by a 10.9% increase in renewal premiums. Assets under management rose 15% year-on-year to ₹4.48 lakh crore. Persistency improved across key cohorts, indicating stronger customer retention and engagement.

Market Leadership and Operational Strength

SBI Life maintained its leadership in the private sector, capturing a 22.8% market share in individual rated premiums for FY25. The insurer’s embedded value rose 21% to ₹70,250 crore, with an operating return on embedded value of 20.2%. The solvency ratio stood at a comfortable 1.96x, well above regulatory requirements, reflecting prudent risk management and balance sheet strength.

Brokerage Upgrades and Investor Optimism

The share price rally was further supported by optimistic commentary from leading brokerages. Several analysts maintained their ‘Buy’ ratings, citing factors such as improving policyholder persistence, rising core premium income, and a stable solvency position as key strengths. Ongoing investments in expanding the agency network and enhancing digital platforms were also noted as positive drivers, expected to contribute to future growth and improved cost efficiency.

Product Mix and Margin Outlook

While single premium inflows moderated, the shift towards traditional and non-linked products supported margins. The value of new business (VNB) for Q4 beat analyst expectations, and the VNB margin remained healthy at 27.8%. 

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