SBI Life Insurance Company Limited delivered robust financial results for the quarter ended September 30, 2026, with net profit rising 11% to ₹549.23 crore compared to ₹494.59 crore in the corresponding quarter of the previous year. However, according to Zee Business research, the company's profit after tax (PAT) of ₹549 crore fell short of analysts' expectations of ₹610 crore for the second quarter of FY27. The company's profit before tax (PBT) under the Shareholders' Account increased to ₹551 crore from ₹513 crore in September 2025, demonstrating strong operational performance across key metrics despite the estimate miss. Shares of SBI Life closed at ₹1,634.65 apiece, down 0.45%, on the BSE following the results announcement.
The insurer's net premium income showed healthy growth of 8.17% for the quarter ended September 30, 2026, reaching ₹26,877.70 crore compared to ₹24,848.31 crore in the corresponding quarter of the previous year. As reported by The Hindu BusinessLine, the company's gross premium income increased 8.1% to ₹27,115 crore, which exceeded analysts' expectations of ₹26,960 crore. For the half-year period ended September 30, 2026, net premium income stood at ₹46,956 crore, indicating sustained momentum in the company's core business operations and meeting market expectations for premium growth. The first-year premium rose 8.81% to ₹5,755.86 crore, while renewal premium increased 12.57% to ₹15,763.64 crore for the period under review.
SBI Life's new business APE reached ₹6,370 crore in Q2 FY27, growing 7% year-on-year, demonstrating strong performance in the company's core business segment. According to NDTV Profit, absolute VNB grew 12% YoY to ₹1,860 crore, reflecting a VNB margin of 29.2% for the quarter compared to 27.9% in Q2 FY26, significantly exceeding analyst estimates of 27.5%. For H1 FY27, VNB grew 19% YoY with a VNB margin of 27.9%, maintaining the company's strong value creation trajectory. The enhanced VNB margin performance was attributed to favorable product mix, rising rider attachment rates, and strong business volumes, as noted by Motilal Oswal. EV at the end of H1 FY27 stood at ₹87,350 crore, rising 15% YoY from ₹80,790 crore at the end of FY26. The VNB margin beat of 1.2 percentage points year-on-year despite GST ITC loss impact was primarily driven by changes in product mix, with strong growth in non-par savings, annuity, pure retail term, and higher rider attachment in savings products. Excluding the impact of GST, VNB margins in the September quarter and first half of FY27 would have been 30% and 28.8% respectively, as noted by Nomura.
Total annualised premium equivalent (APE) grew 7.4% year-on-year in Q2FY27, led by strategic product diversification across high-margin segments. According to Nomura, non-participating products rose 27%, annuity products increased 28%, and individual protection grew 14% during the quarter. The scale-up in high-margin products was identified as a key driver of the expansion in VNB margins. Individual APE growth stood at 12% year-on-year in the first half of FY27, which is below the company's full-year guidance of 14-15%, though management reaffirmed this target. Management indicated that it had already increased guarantee rates and that the pickup in non-par guaranteed products through the agency channel had been encouraging. The company is also set to launch a new annuity product, further strengthening its product portfolio in high-margin segments.
Expenses of management (EoM) rose 11.89% year-on-year to ₹3,087.47 crore in Q2FY27 compared with ₹2,759.17 crore in the corresponding period of FY26, as reported by The Hindu BusinessLine. The 13th-month persistency ratio improved to 87.6% in H1FY27 from 87.1%, while the 61st-month persistency ratio fell to 58.7% from 60.6% during the period. Single premium declined 3.38% year-on-year to ₹5,595.63 crore in the second quarter of FY27. Amit Jhingran, MD & CEO, emphasized the company's focus on sustainable business growth, strengthening distribution networks, and expanding insurance penetration during H1FY27. He noted the company's focus on customer-centric solutions, protection-led offerings, and diversified product portfolio while maintaining profitability and long-term value creation. Management reaffirmed guidance of delivering ~14-15% Retail APE growth in FY27, with VNB margin to range at ~26-28%.
SBI Life's stock has declined 20% year-to-date, compared with a 13% fall in the Nifty, largely due to concerns over distribution reforms. According to management, SBI Life is the least impacted by the regulator's consultation paper on recalibrating insurance distribution economics. Nomura has maintained its 'Buy' rating on SBI Life Insurance, retaining the stock as its top pick in the life insurance sector, despite cutting its target price to ₹2,340 from ₹2,440 after raising its risk-free rate assumption. The brokerage rolled forward its valuation to September 2027 and raised its risk-free rate assumption to 7.25% from 6.25%, taking its cost of funds to 13.9%. Nomura expects APE to grow 16% and VNB to rise 17% year-on-year in FY27, with sustained momentum in non-par products, annuity and individual protection supporting VNB margins of 26-29% in Q3 and Q4FY27, translating into a 27.6% margin for the full year. The company currently trades at 1.5 times one-year forward price-to-embedded-value, with Nomura flagging the risk that lower commission structures under distribution reforms could intensify competition from large urban-focused players.
