Revenue
Margin
Demand
Guidance
Tone
Event Participants
Executives
6
Amit Jhingran, Prithesh Chaubey, Sangramjit Singh Sarangi, Santosh Chacko, Sharma, Subhendu Bal
Analysts
8
Anshu Mandeep, Avinash Singh, Dipanjan Ghosh, Madhukar, Neeraj Toshniwal, Sanketh Godha, Shreya Shivani, Supratim Datta
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total New Business Premium | ₹8,910 crores | Up 23% YoY; private market share 20.5%, total market share 8.2% |
| Individual Rated NBP | ₹3,970 crores | Up 14% YoY; private share 22.2%, total market share 15.2%; 3-yr CAGR 14% vs industry 13% |
| Group New Business Premium | ₹3,290 crores | Up 41% YoY; 37% of NBP; lumpy GTL contract inflated share |
| Total APE | ₹5,380 crores | Up 36% YoY |
| Individual APE | ₹3,990 crores | Up 14% YoY; ULIP share 61% vs 65% in Q1 FY26 |
| Group APE | ₹1,230 crores | Up 313% YoY on large one-off GTL policy (treated as regular premium) |
| Renewal Premium | ₹12,380 crores | Up 17% YoY; 58% of gross written premium |
| Gross Written Premium | ₹21,290 crores | Up 20% YoY |
| Assets Under Management | ₹5.2 lakh crores | Up 10% YoY |
| Indian Embedded Value | ₹85,290 crores | Up 15% YoY over June 2025 |
| Profit After Tax | ₹720 crores | Up 22% YoY; aided by supportive market conditions |
| Value of New Business | ₹1,410 crores | Up 29% YoY; ex-GST ₹1,470 crores, up 35% |
| VNB Margin | 26.2% | Ex-GST 27.4%; within 26–28% guidance band; ~110 bps GST drag |
| Solvency Ratio | 1.96× | vs regulatory minimum of 1.50× |
| OpEx Ratio | 7.7% | Up from 6.3% YoY; stamp duty on higher sum assured and labour code costs |
| Total Cost Ratio | 12.0% | Up from 10.8% YoY |
| 13th Month Persistency | 87.7% | Improved 61 bps YoY |
| 49th Month Persistency | 69.1% | Improved 68 bps YoY |
| 61st Month Persistency | Declined YoY | COVID cohort moved into 61st month; expected to normalise by end FY27 |
| Death Claim Settlement Ratio | 98.8% | Strong claims experience |
| Mis-selling Ratio | 0.02% | Among the lowest in the private industry |
| Policies Sold | 4.25 lakh | Covering 8.7 million lives; sum assured +46% individual, +265% group YoY |
Geographic & Segment Commentary
- ULIPs: Individual APE of ₹2,450 crores, contributing 61% of individual APE (down 400 bps YoY); rider attachment now ~45–50% of policies, driving higher sum assured.
- Guaranteed Non-Par Savings: APE ₹970 crores, up 27% YoY; June 2026 repricing improved customer IRR in line with yield curve movement; demand remains strong.
- Participating & Protection: Par APE ₹240 crores, up 35% with sum assured +81%; pure protection APE grew 41% YoY on a low-ticket base; ROP-to-non-ROP mix improved to 68:32 from 73:27; riders now 39% of individual sum assured.
- Group & Retirement: Group NBP ₹3,290 crores, up 41%, including one large GTL contract; annuity/pension new business ₹1,890 crores; group APE up 313% YoY.
- Distribution – Bancassurance: SBI + RRBs contribute 47% of total APE; SBI individual APE ₹2,450 crores (+10%), branch productivity ₹4.5 million (+7%); non-ULIP mix improved 200 bps YoY.
- Distribution – Agency: Individual APE ₹1,310 crores, up 20% YoY; agent productivity ₹2 lakhs; non-ULIP share rose from 43% to 46%; added 34,000 agents (gross) and 11 branches.
- Distribution – Other Channels: Direct, corporate agents, other banks, brokers, online/web aggregators grew 160%, contributing 28% of total APE; banks other than SBI Group grew 19%; new corporate agency tie-up with J&K Bank commencing Q2.
Company-Specific & Strategic Commentary
- Product Mix Shift: Non-ULIP share improved 200 bps YoY; management targeting ~38% non-ULIP mix with par, non-par, and protection growing faster than ULIPs.
- Agency 2.0 / Agency Next: Sustained investment in agency infrastructure — 100+ branches opened in last 3 years, 34,000 agents added in Q1; productivity and non-ULIP mix both improving.
- Digital & Customer Service: 99.9% of individual proposals submitted digitally; 67% processed through automated underwriting; mis-selling ratio 0.02% and death claim settlement 98.8% — among industry best.
- GST Impact Management: Q1 GST drag of ₹230 crores (~110 bps on VNB margin); management expects partial impact in Q2, fading thereafter as base effect normalises.
- EV & Assumptions: Indian EV ₹85,290 crores (+15% YoY); no assumption changes in Q1 — the –40 bps in VNB walk reflects March 2026 annual review refinements to mortality and expenses.
- New Initiatives: Regular deferred annuity product expected within next quarter; J&K Bank corporate agency channel to start contributing from Q2.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Individual Rated Premium Growth | 14–15% for FY27 | Q1 delivered 14%, in line with guidance; momentum expected to hold |
| VNB Margin | 26–28% for FY27, moving toward upper end | Q1 at 26.2% (27.4% ex-GST); group business drag seen as cyclical bottom; product mix normalisation to lift margins |
| GST Impact | Fades from Q3 FY27 | Q1 |
| Operating Expenses | Elevated in Q1, normalises by Q3 | Stamp duty on higher sum assured and labour code costs; expense trajectory in line with plan |
| 61st Month Persistency | Back to normal by end FY27 | COVID cohort exits the metric by Q3 |
| Product Launches | Regular deferred annuity in next quarter | Product under development; launch at opportune time |
| Agency Channel | Stronger contribution in remaining quarters | Agency 2.0/Nexus programs driving agent additions, productivity, and non-ULIP mix |
Risks & Constraints
| Risk | Context |
|---|---|
| Group Business Lumpiness | Large one-off GTL contract lifted group APE 313% and dragged VNB margin; recurrence of such contracts could keep margins below the upper end of guidance |
| GST Margin Drag | ₹230 crores / ~110 bps impact in Q1; Q2 still partially impacted before base benefit fades; creates near-term margin volatility |
| Expense Inflation | OpEx ratio up 140 bps YoY to 7.7% and total cost ratio up 120 bps to 12.0%; driven by sum assured-linked stamp duty and labour code compliance — if sustained, could pressure profitability |
| Interest Rate Sensitivity | Non-par pricing is closely tied to yields; management repriced IRR in June 2026 — adverse yield movements could compress margins or require further repricing |
| Regulatory Changes | Pending IRDAI regulations on surrender value, commissions; management expects a positive outcome but timing and magnitude are uncertain |
| Persistency Risk | 61st month persistency declined due to COVID cohort; temporary, but renewal premium growth could be affected before normalisation |
| Protection Competition | Individual protection APE growth of 18% lagged industry due to deliberate shift toward lower-ticket pure protection (41% growth); competitive pricing in pure-term segment could pressure volumes |
Q&A Highlights
VNB Margin and Group Business Impact
- Question: Avinash Singh (Emkay Global) asked whether individual margins improved strongly despite GST, given the unusually high group share of APE (~25% vs typical 10–12%). Madhukar (J.P. Morgan) asked to quantify the GT drag vs positive individual mix.
- Answer: Amit Jhingran (MD & CEO) said group business is inherently lumpy and dragged overall margin; Q1 represents the bottom, with margin guidance of 26–28% intact and expected to move toward the upper end as individual mix normalises. Management declined to disclose product-wise margins.
Agency Channel Strategy
- Question: Avinash Singh (Emkay Global) asked whether agency growth is sustainable and whether the mix shift away from SBI impacts costs/margins.
- Answer: Amit Jhingran noted Agency 2.0/Next programs — 100+ new branches over three years, 34,000 agents added in Q1, and 20% agency APE growth — will contribute stronger numbers in remaining quarters; SBI remains the core, with a healthy bancassurance-agency mix.
GST Impact and Expense Trajectory
- Question: Shreya Shivani (Nomura) noted GST drag of ~1.1% for the third consecutive quarter and asked if it will persist; also flagged higher other expenses.
- Answer: Sangramjit Singh Sarangi (CFO) said GST impact is strictly base-effect; commission ratio is already low and product mix is offsetting the drag. Other expenses rose due to stamp duty on higher sum assured and first-quarter labour code impact; expected to streamline over the next three quarters.
Protection Mix and Pure Protection Growth
- Question: Madhukar (J.P. Morgan) asked for ROP vs non-ROP split and whether protection growth is softer than competition.
- Answer: Management stated overall protection growth of 22% (higher than IRP growth), pure protection grew 41%, and ROP/non-ROP mix improved to 68:32 from 73:27; lower ticket size in pure protection explains apparent softness vs industry.
Rider Attachment and Sum Assured
- Question: Supratim Datta (Jefferies) asked what proportion of ULIPs carry higher sum assured vs a year back.
- Answer: Amit Jhingran said the company sells normal ULIPs with rider attachments; attachment rate has improved from ~35% to 45–50% over the past two years, lifting sum assured — riders now account for 39% of individual sum assured.
Persistency – COVID Cohort
- Question: Supratim Datta (Jefferies) asked why 61st month persistency declined YoY.
- Answer: Amit Jhingran explained the COVID cohort — which has moved through 13th, 25th, 37th, and 49th month buckets — has now reached the 61st month; it will exit by end of Q3 FY27, restoring normal persistency levels.
Assumption Changes and VNB Walk
- Question: Sanketh Godha (Avendus Park) asked what drove the –40 bps assumption change in the VNB walk.
- Answer: CFO clarified no assumption changes were made in Q1; the –40 bps reflects annual review refinements from March 2026 (operating assumption change –20 bps) plus base effects — mortality and expense refinements, not a new change.
Distribution and Other Banks
- Question: Neeraj Toshniwal (UBS) asked about credit protect growth, product mix goals, and the other-bank growth number.
- Answer: Credit protect was flat YoY but on plan; ULIP share is 62% with a target of ~38% non-ULIP; other banks grew 19% (corrected from an earlier 31% mention). Dipanjan Ghosh (Citi) was told the other-bank mix is ~20% ULIP / 80% non-ULIP; rider APE is not disclosed separately.
Regulatory Landscape and Operating Leverage
- Question: Anshu Mandeep (ICICI Securities) asked why margins don't improve with operating leverage and sought views on the regulatory environment.
- Answer: Amit Jhingran said 26–28% margin is a healthy range; Q1 exception was group lumpiness. Given SBI Life's low commission and grievance ratios, regulatory changes are expected to be positive; non-par products are repriced dynamically with yield movements.
Key Takeaway
SBI Life delivered a steady Q1 FY27 with individual rated premium up 14% to ₹3,970 crores and PAT up 22% to ₹720 crores, while VNB rose 29% to ₹1,410 crores on a 26.2% margin (27.4% ex-GST), driven by favorable product mix shifts toward non-par savings, par, and protection. A large one-off GTL contract inflated group APE 313%, creating a lumpy mix that dragged margins, though management treats Q1 as the cyclical bottom and reaffirms FY27 guidance of 14–15% IRP growth and 26–28% VNB margin with trajectory toward the upper end. Agency 2.0 is scaling — 34,000 agent additions, 11 new branches, 20% APE growth — while other channels surged 160%. Expense ratios rose to 7.7% OpEx and 12% total cost on stamp duty and labour-code items, expected to normalise by Q3. GST drag of ~110 bps should fade after Q2. Key watch points: group business lumpiness, COVID-cohort persistency recovery, expense control, and regulatory/rate developments.