Shares of SBI Life Insurance Company jumped 4.48% to Rs 1,681 after the company announced its Q4 FY25 results, with net profit rising marginally to Rs 813.51 crore from Rs 810.80 crore in Q4. The market welcomed the steady profitability despite the company facing some income and investment related issues in the quarter ended March 31, 2025.
Total income declined a massive 35.66% year-on-year to Rs 24,169.41 crore during Q4 FY25. But sequentially, the insurer showed strong performance and net profit and revenue grew by 47.69% and 30.34%, respectively, compared to Q3 FY25.
Net premium income declined 4.99% year-on-year to Rs 23,860.71 crore in the quarter. The company also incurred a notable investment loss of Rs 1,040.83 crore in Q4 FY25 compared to investment income of Rs 10,811.70 crore in the same quarter of the previous fiscal. In FY25, SBI Life posted a good full-year performance.
The company’s net profit grew 27.43% year-on-year to Rs 2,413.30 crore, while total income declined 11.69% to Rs 1,17,118.67 crore. The insurer’s total assets grew 14% to Rs 16,980 crore in FY25 from Rs 14,910 crore in FY24. SBI Life had a strong solvency ratio of 1.96 as on March 31, 2025, indicating its financial strength.
The company’s assets under management (AUM) grew 15% y-o-y to Rs 4,48,040 crore, with an excellent debt-equity ratio of 61:39. More importantly, over 94% of its debt investments are AAA-rated and sovereign instruments. New business value (VONB) grew 7% to Rs 5,950 crore for FY25, while VONB margin declined marginally to 27.8% from 28.1% in FY24.
New business premium (NBP) fell 7% y-o-y to Rs 35,580 crore, while gross written premium (GWP) grew 4% to Rs 84,980 crore. The persistency ratio also improved with 13th month and 61st month persistency increasing by 63 basis points and 528 basis points, respectively, reflecting increased customer retention and improved quality of business.
Operating metrics expressed marginal increase in cost pressures. Operating cost ratio stood at 9.7% during FY25 as against 8.9% during FY24. Commission ratio increased from 4% to 4.4% and operating expense ratio reached 5.3% as against 4.9%.
SBI Life continues to operate across a wide range of life insurance products such as individual and group policies, pension plans, annuity products, ULIPs and microinsurance with an emphasis on customer-centric approach and long-term value creation.
