SBI Life Navigates GST Reforms with Robust H1 FY26 Performance

SBI Life Insurance Company Limited has demonstrated a resilient performance in the first half of fiscal year 2026, showcasing strategic agility amidst evolving regulatory landscapes. The company reported a strong set of numbers, reaffirming its leadership position in the private insurance sector. Despite the transitional impact of revised GST rates, SBI Life achieved the highest new business premium in the private industry, underscoring its robust strategy and deep customer trust.

The company's Gross Written Premium (GWP) surged by 19% year-on-year, reaching an impressive 42,900 crore. This growth was complemented by a 14% increase in the Value of New Business (VoNB), which stood at 2,750 crore, with a healthy VoNB margin of 27.8%. Profit After Tax (PAT) also saw a modest 4% growth, reaching 1,089 crore. The Indian Embedded Value (IEV) for the company as of September 30, 2025, was reported at 76,000 crore, marking a 15% growth over the corresponding period last year, with an operating return on EV of 17.6%. These figures highlight the company's strong financial health and capacity for sustained value creation.

Strategic Product Mix and Distribution Excellence

SBI Life's performance was significantly bolstered by a strategic shift in its product mix, with robust contributions from both individual and group protection segments. The company successfully introduced two new products: Smart Shield Plus, a protection offering, and Smart Money Back Plus, a participating product. Smart Money Back Plus garnered a strong response, attracting over 8,500 customers within 15 days of its launch, while Smart Shield Plus contributed 11% to the total protection sum assured. This focus on protection is expected to drive further growth, with management aiming to increase protection's share to above 10% of the Annualised Premium Equivalent (APE).

Distribution remains a core strength for SBI Life. The bancassurance channel, particularly through SBI and RRB banks, continues to be a major contributor, accounting for 57% of the total APE business. The company also expanded its agency channel, adding over 64,000 agents and opening 44 new branches during the half year. This widespread network, coupled with a strong emphasis on digitalization, ensures deeper penetration across diverse demographics. The company reported that 99% of individual applications are submitted digitally, showcasing its commitment to leveraging technology for efficiency and customer convenience.

Navigating Regulatory Changes and Future Outlook

The recent GST reforms presented a transitional challenge, leading to increased GST expenses and pressure on profitability due to the non-availability of input tax credit. However, SBI Life proactively addressed this by passing on the entire GST benefit to customers and enhancing product features in its Platina series. Management expressed confidence that an uplift in the product mix and operational efficiencies in the second half of FY26 would be sufficient to absorb the GST impact, aiming to maintain margins within the 26-28% range.

Looking ahead, SBI Life is well-positioned to capitalize on India's underpenetrated insurance market and favorable demographic tailwinds. The company's focus on customer-centricity is evident in its high death claim settlement ratio of 99% and a remarkably low mis-selling ratio of 0.02%. With ongoing investments in digital capabilities, a diversified product portfolio, and an expanding distribution network, SBI Life is poised for sustained growth and aims for an APE growth of 13-14% for individual APE for the full fiscal year 2026. The company's disciplined execution and unwavering commitment to customer trust are expected to drive long-term value for all stakeholders.