SBI Life Insurance Q2 preview: Profit likely to grow 35%; VNB margin seen improving

SBI Life Insurance Company (SBILIFE), the country's leading public insurer, is slated to report its Q2 earnings on October 23 (Wednesday). Zee Business Research estimates the company's profit after tax (PAT) during the review period to climb 35 per cent on-year to Rs 510 crore. During the same period last year, SBI Life's profit was reported at Rs 380 crore.

Analysts estimate gross premium to grow by 10 per cent year-on-year during the July-September quarter to Rs 22,150 crore in comparison to Rs 20,175.8 crore during the same period last year.

Nevertheless, new business premium (NBP) income is seen to remain steady during the quarter under review. In FY24, the company's NBP amounted to Rs 17,800 crore,  marking a 5-year CAGR of 14 per cent.

Furthermore, analysts see growth in value of new business (VNB) to remain intact during the September quarter, with margins logging an improvement sequentially. In the June quarter, the company's VNB margin was reported at 26.8 per cent.

The leading insurer has been registering slow growth via its SBI channel, which is the main cause of concern at the company.

The life insurance company's solvency ratio, which determines an insurance business's ability to meet its long-term debt obligations, stood at 212 per cent during the corresponding quarter last year.

Key monitorables

The key focus in the company's earnings will be on distribution of the company's products via bancassurance.

SBI Life share price

Ahead of the results later tomorrow, shares of the company traded flat with a negative bias at Rs 1,712.45 per share on the BSE. In the last one year, the company's stock has zoomed 26 per cent.

on Friday reported a net profit of Rs 380.2 crore for the July-September period, an increase of 0.9 per cent compared with the corresponding quarter a year ago. SBI LIFE Q2FY25e YoY