SBI Life Insurance delivered a strong operational performance in Q4FY25, with robust growth in value of new business (VNB) and margins, even as premium growth came in mixed. According to Jefferies, the 10% YoY rise in VNB was ahead of expectations, supported by a favourable product mix and improved term insurance attachment rates.
The company reported a VNB of ₹1,660 crore, compared to ₹1,510 crore in the year-ago quarter. Meanwhile, the VNB margin expanded by 216 basis points to 30.46%, versus 28.3% a year earlier — reflecting improved profitability across segments, especially in non-linked and protection products.
While new business premium (NBP) dropped 24% YoY to ₹9,324 crore, the more relevant metric — total annualised premium equivalent (APE) — rose 2% to ₹5,450 crore. Retail APE, a key driver of long-term growth, increased 8% YoY to ₹4,801 crore, underscoring continued traction in individual business, despite some weakness in ULIPs.
Jefferies highlighted that management commentary turned more confident this quarter, with expectations of early double-digit sales growth through the SBI Bank channel. This, in the brokerage’s view, could ease investor concerns around growth and profitability and offer scope for valuation rerating.
Jefferies has retained its ‘Buy’ rating and target price of ₹2,000, while raising its VNB estimates by 7%, noting that the company remains well-positioned in the life insurance space with improving distribution productivity and margin outlook.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
