Q3 2026 SBI Life Insurance Company Ltd Earnings Call Transcript
Key Points
- SBI Life Insurance Co Ltd (NSE:SBILIFE) reported a 22% increase in Value of New Business (VONB) for Q3 FY26, reaching INR22.9 billion.
- The company's embedded value grew by 18% to INR801.3 billion as of December 31, 2025.
- Assets under management increased by 16%, reaching INR5.12 trillion.
- The net claims settlement ratio is high at 99.3%, indicating efficient claims processing.
- Digital transformation efforts have resulted in 99.7% of individual proposals being submitted digitally, enhancing operational efficiency.
- The operating expense ratio increased to 6.2% from 5.3% year-over-year, indicating rising costs.
- The total cost ratio also rose to 11.2% from 10.2%, reflecting higher expenses.
- There was a slight decline in persistency in certain cohorts, although the company remains optimistic about improvement.
- Solvency ratio decreased to 191%, which, while above regulatory requirements, is lower than the company's management threshold.
- The growth in non-par savings products was not as strong as expected, partly due to a shift in focus to new participating products.
(audio in progress)
The margin is reported after accounting for the impact of GST. Excluding this impact, the VONB margin would have stood at 28.3% with a gain of 140 bps. In Q3 FY26, VONB reached INR22.9 billion, registering a 22% increase over the same quarter last year. Embedded value for the company as on December 31, 2025, stands at INR801.3 billion with a growth of 16% -- sorry, 18% over corresponding period.
OpEx ratio stands at 6.2%, and total cost ratio stands at 11.2% for the period ended December 31, 2025, as compared to 5.3% and 10.2%, respectively, for the period ended December 31, 2024.
With respect to persistency of individual regular premium, 13th month persistency stands at 87.1%, with an improvement of 101 basis points. While there has been a slight decline in other cohorts during the current period, we remain confident that persistency will improve by the end of the year.
As mentioned in my opening remarks, assets under management stand at INR5.12 trillion as
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