SBI Life Q2 Results: Net Profit Drops 7% YoY to ₹4,950 Crore Amid Rising Costs, Lower Investment Income

SBI Life Insurance, backed by the State Bank of India, reported a 7% year-on-year decline in net profit for the quarter ended September 30, 2025. The insurer posted a profit of ₹4.95 billion (approximately $56.3 million) as higher operating costs and a sharp fall in investment income weighed on quarterly earnings.

Despite strong demand for insurance products in India, SBI Life’s profitability took a hit as commission and operating expenses surged. The company’s total expenses climbed 28% year-on-year to ₹27.59 billion, largely due to higher agent payouts to boost policy sales amid intensifying competition.

Revenue and Premium Growth

The insurer’s net premium income rose 22.6% to ₹248.48 billion, supported by a nearly 20% growth in renewals of existing policies. This strong premium performance, however, was not enough to offset the decline in investment income.

For the half-year ended September 30, SBI Life’s investment income fell sharply to ₹200.6 billion, compared to ₹396.3 billion in the same period last year.

Product Mix and Market Conditions

With the equity markets trading in a narrow range and staying below last year’s record highs, life insurers have been shifting focus to non-participating products to safeguard margins. SBI Life’s share of market-linked policies (ULIPs) dropped to 57% of the overall product mix, from 63% a year earlier, indicating a strategic move toward higher-margin offerings.

The company’s value of new business (VNB) increased 14.5% to ₹16.6 billion, while the VNB margin improved to 27.8%, up from 26.8% last year. Meanwhile, annualised premium equivalent (APE) sales — a key indicator of new policy growth — rose 10% to ₹59.5 billion for the quarter.

Industry Context

India’s insurance sector continues to benefit from growing financial literacy and rising awareness about life coverage. However, the industry faces mounting challenges from high distribution costs, volatile markets, and tariff-related uncertainties, prompting insurers to diversify their product portfolios.