SBI Life Q2 Results: Profit Rises 39%, But Misses Estimates

SBI Life Insurance Co.'s net profit rose 39.3% year-on-year in the July-September quarter, but missed analysts' estimates.

The insurer posted a net profit of Rs 529 crore in the quarter ended Sept. 30, 2024. That compares with consensus estimate of Rs 730 crore of analysts polled by Bloomberg. In the year-ago period, the company posted a net profit of Rs 380 crore.

The net premium income during the quarter under review climbed 1.1% year-on-year to Rs 20,266 crore, compared to Rs 20,050 crore in the corresponding quarter of the previous fiscal.

• Net Profit up 39.3% at Rs 529 crore versus Rs 380 crore.

• Net Premium Income up 1.1% at Rs 20,266 crore versus Rs 20,050 crore.

• Annual Premium Equivalent up 3% at Rs 5,390 crore vs Rs 5,230 crore.

• Value of New Business down 3% at Rs 1,450 crore versus Rs 1,490 crore.

• VNB margin up 30 basis at 26.9% vs 26.6% (QoQ).

• 13th month Persistency at 86.4%.

• 61st month Persistency at 61.9%.

SBI Life's solvency ratio rose to 2.04% during the quarter under review, compared to 2.01% in the June quarter.

The 13th month persistency ratio rose to 86.4% from 85.4%, at the end of first half of financial year 2025, whereas the 61st month persistency ratio improved to 61.9% from 57.5% in the year-ago period.

Shares of SBI Life Insurance rose following the second quarter results even as the insurer's bottom-line missed estimates. The scrip was trading 0.71% lower at Rs 1,710.15 apiece, compared to a 0.11% decline in the benchmark Nifty 50.

The stock has risen 19.62% year-to-date, and by 28.04% over the past 12 months.

Thirty three of the 34 analysts tracking SBI Life have a 'buy' rating on the stock and one recommends a 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 19.7%.

(This is a developing story.)