SBI Life Insurance is set to release its Q4FY25 results on April 24, with early indicators suggesting a mixed performance. According to estimates, the insurer’s first-year premium (FYP) has declined by 11.4% year-on-year to approximately Rs 3,871 crore, indicating pressure in new policy subscriptions during the March quarter. However, the Annualised Premium Equivalent (APE), a key growth metric, is expected to show a modest improvement of up to 8% year-on-year, driven by a low base in the year-ago quarter and traction in high-margin non-par savings products.
Despite a stable topline, brokerages are forecasting a dip in profitability metrics. Nuvama Institutional Equities expects SBI Life to post an APE of Rs 5,740 crore, up 7.8% year-on-year but down 17.2% quarter-on-quarter. Value of New Business (VNB) is seen declining to Rs 1,480 crore, down 1.7% year-on-year and over 21% sequentially. Margins could contract to 25.7%, compared to 28.2% last year.
Yes Securities has a more conservative view, estimating flat APE at Rs 5,347 crore and VNB at Rs 1,444 crore, down 4% both year-on-year and quarter-on-quarter. However, the brokerage projects a slight 5 basis points improvement in VNB margins on the back of a favourable product mix and maintains a ‘Buy’ call with a price target of Rs 1,920.
Key areas of focus for investors will be the management’s commentary on product strategy, cost controls, and the performance of the bancassurance channel. With growth in new business premiums slowing and margins under pressure, the insurer’s plans to navigate the challenging demand environment in FY26 will be closely watched. Overall, SBI Life is likely to deliver steady APE growth, but weaker profitability metrics could weigh on sentiment post-results. The company’s ability to turn premium pressures into long-term gains will be a key monitorable.