SBI Life Q3 Net Profit Rises 5% to Rs 577 Crore; Net Premium Income Up 22%
SBI Life has successfully navigated a dynamic quarter, confirming robust growth in profitability and core business metrics as of December 31, **2025**. The company reported a net profit of **₹577 crore** for the third quarter of fiscal year **2026**, marking a **5%** increase year-over-year.
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Business Momentum and Premiums
The primary driver for the quarter remained premium collection, reflecting strong market activity and customer demand. Net premium income surged **22%** year-on-year, reaching **₹30,245 crore**. One-time premium receipts increased by **24%**, while renewal premiums grew by nearly **21%**, underscoring solid customer retention.
New business traction was exceptional, with the Total New Business Sum Assured recording a massive **69%** growth for the quarter. This surge indicates growing customer preference for higher sum assured policies within the current environment.
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Profitability and Market Standing
The focus on sustainable business is reflected in the Value of New Business (VONB), which grew by **22%** for the quarter, reaching **₹22.9 billion**. The company maintained strong profitability with the VONB margin standing at **28.3%** when excluding the impact of GST.
For the nine-month period ending December **2025** (9M FY26), VONB registered a **17%** rise, totaling **₹5,040 crore**, on a **27.2%** margin. The company retained its industry leadership, commanding a **25.6%** market share in the Individual Rated Premium segment across the private market.
Gross Written Premium (GWP) climbed **20%** year-on-year to **₹73,350 crore** during the nine-month duration.
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Financial Strength and Reserves
The balance sheet demonstrated continued strength and stability. Assets under Management (AUM) expanded by **16%**, rising to **₹5.12 trillion** as of December 31, **2025**. Net worth strengthened by **15%**, increasing to **₹19,010 crore**.
The company’s embedded value grew by **18%** to **₹801.3 billion** at the close of the period. The investment portfolio remains highly conservative, with a **59:41** debt-equity allocation, and nearly **95%** of debt investments are placed in AAA-rated and sovereign instruments.
Critically, the Solvency Ratio stood at a robust **191%**, comfortably above the regulatory mandate of **150%**, indicating a strong financial cushion.
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Operational Focus and Costs
Operational metrics reflect sustained quality, with the net claims settlement ratio remaining high at **99.3%**. Customer retention improved, evidenced by the 13th-month persistency ratio rising by **101 basis points** to **87.1%**.
Strategic product diversification saw the protection segment deliver strong growth, increasing by **44%**. Distribution remains heavily reliant on the core bancassurance channel, which contributed **62%** of the annualized premium equivalent. Digital adoption continues to improve efficiency, with **99.7%** of individual proposals being submitted digitally.
The quarter saw operational costs rise, however. The operating expense ratio increased to **6.2%** from **5.3%** year-over-year, leading the total cost ratio to climb to **11.2%**. Management guidance aims to sustain margins between **26%** and **28%** by optimizing the product and distribution mix.
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Market Snapshot
SBI Life closed trading on January **28, 2026**, at **₹2,053**. The company holds a market capitalization of over **₹2.04 lakh crore**. The stock trades at a Price-to-Earnings ratio of **83.32**, reflecting premium valuation compared to broader indices. The consensus view among analysts suggests a near-term upside target of approximately **9%** from current levels.