India's SBI Life quarterly profit rises on boost from policy renewals (updated)

Sbi Life Insurance

24/07/2025 11:25

Adds share move in paragraph 3, details in paragraphs 5-8

July 24 (Reuters) - India's SBI Life Insurance Company SBIL.NS reported a 14% rise in first-quarter profit on Thursday, aided by healthy premiums from policy renewals.

The insurer's profit rose to 5.94 billion rupees ($68.8 million) for the quarter ended June 30 from 5.20 billion rupees a year earlier.

The company's shares pared some losses after results to close 0.9% lower.

    SBI Life's premium growth was supported by strong policy renewals, while its margins were aided by lower demand for the less profitable market-linked policies amid volatility in the Indian equity markets.

Contribution from protection and non-par policies also drove the value of new business (VNB) and VNB margin higher during the quarter.

VNB, or the expected profit from new policies, rose 12% to 10.9 billion rupees, while VNB margin grew to 27.4%, from 26.8%.

However, premiums from new policies sold, or new business premiums, grew only 3% year-on-year, slower than the previous year's 13% growth.

Analysts said SBI Life has struggled with insurance sales through its parent, State Bank of India SBI.NS, unlike other insurers such as HDFC Life HDFL.NS and ICICI Prudential ICIR.NS.

($1 = 86.3950 Indian rupees)

 (Reporting by Nishit Navin and Nandan Mandayam; Editing by Mrigank Dhaniwala and Eileen Soreng)

 ((Nishit.Navin@thomsonreuters.com;))