SBI Life Insuran Q2 FY27 Results (NSE: SBILIFE)
Signal: Earnings grew
The read
The key trajectory is improving earnings quality within a volatile insurance income base: revenue fell 47.3% QoQ to ₹24,29,170 lakh because of the prior quarter's actuarial-liability movement, yet PAT grew 11.0% YoY to ₹54,923 lakh and 61st-month premium persistency improved 177bps YoY to 58.01%; the unresolved risk is the ₹1,09,801 lakh Non Par Individual Life deficit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹24,291.7 Cr | +6.5% | -47.3% |
| Net profit | ₹549.23 Cr | +11.0% | |
| EPS | ₹5.47 | +11.0% | |
| EBIT margin | 0% |
P&L walk
Standalone revenue of ₹24,29,170 lakh increased 6.5% YoY but fell 47.3% QoQ because the immediately preceding quarter included a much larger actuarial-liability movement; PAT still rose 11.0% YoY to ₹54,923 lakh and EPS tracked it.
Segments
Non Par Individual Life was the main drag, reporting a ₹1,09,801 lakh segment deficit versus a ₹26,145 lakh deficit YoY, while Non Par Group life contributed ₹65,860 lakh and Linked Individual Life ₹26,152 lakh of surplus; Non Par Annuity also turned profitable at ₹17,245 lakh versus a ₹3,880 lakh loss YoY.
Key positives
- PAT rose 11.0% YoY to ₹54,923 lakh and basic EPS rose in step by 11.0% to ₹5.47, indicating no material dilution signal.
- Gross premium income increased 8.2% YoY to ₹26,87,770 lakh, with First Year Premium up 8.8% to ₹5,75,586 lakh.
- 61st-month premium persistency improved 177bps YoY to 58.01%, although it declined 109bps sequentially.
- Non Par Group life surplus rose to ₹65,860 lakh from ₹15,116 lakh YoY, while Non Par Annuity moved from a ₹3,880 lakh loss to a ₹17,245 lakh surplus.
- Solvency remained strong at 1.97 versus 1.94 YoY, while total segment assets grew 9.8% YoY to ₹5,10,32,002 lakh.
Key concerns
- Non Par Individual Life remained deeply loss-making at ₹1,09,801 lakh, widening from a ₹26,145 lakh loss YoY and representing the largest segment drag.
- Expenses of Management increased 11.9% YoY to ₹3,08,747 lakh, faster than net premium income growth of 6.5%.
- Conservation Ratio declined to 81.71% from 84.17% YoY and 87.90% QoQ, indicating weaker premium retention in the reported period.
- Operating cash flow for H1FY27 fell 10.0% YoY to ₹13,01,327 lakh despite higher reported PAT.
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