Financial Capital

Strengthening Performance and Maximising Value Creation for all

At SBI Life, we believe that ensuring the stability of our financial base is key to realising our growth ambitions and creating value for all our stakeholders. Our financial capital helps create a solid foundation to drive profitability, deliver sustainable growth, maintain prudent risk assessment and maintain healthy solvency ratio. Our robust, prudent, and agile financial management and risk management framework helps us build our financial reserves and set the foundation for a sustainable business.

Management Approach towards the Capital

We are committed to delivering sustainable long-term returns and holistic growth to all our stakeholders. We are strategically shaping a roadmap for transitioning our relentless pursuit of excellence into an era where our prudent financial management strategy empowers us further to maximise operational efficiencies, deliver robust revenue and profit growth, and create value for all our stakeholders.

Significant Aspects
  • Delivering consistent and sustainable business growth
  • Maintaining a consistent dividend policy for shareholders
  • Ramping up share of high-margin protection business
  • Maintaining a balanced product mix
  • Delivering higher value to all stakeholders
  • Ensuring effective risk management
  • Ensuring operating efficiencies by maintaining cost ratios and improving persistency
  • Making responsible investment
Value Created in FY 2024

1.96 times

Solvency Ratio

27%

Growth in Embedded Value

21.8%

Operating Return on Embedded Value

9%

Growth in VoNB

10%

Growth in Profit After Tax

27%

Growth in AUM

Material Topics
  • Governance, transparency and ethical business practices
  • Risk management and business continuity
  • Purposeful products and services driving financial inclusion
  • Responsible investment
SDGs Impacted
Key Highlights of FY 2024
Scale and Growth

  • Gross Written Premium (GWP) stands at ₹ 814.3 billion, with 21% growth YoY
  • New Business Premium (NBP) registered 29% growth at ₹ 382.4 billion; Maintained private market leadership with Market Share of 24.6%
  • Protection New Business Premium grew 15% at ₹ 41.7 billion
  • New Business APE ₹ 197.2 billion
  • Individual New Business Premium grew 14% at ₹ 238.3 billion, leading to private market share of 25.8%
  • 13th Month Persistency at 86.8%
  • Assets Under Management (AUM) was ₹ 3,889.2 billion, growing by 27% YoY
Value Creation

  • Indian Embedded Value (IEV) was ₹ 582.6 billion, with 27% growth
  • Embedded Value Operating Profits was ₹ 100.5 billion, with 11% growth
  • Operating Return on Embedded Value was 21.8%
  • Value of New Business (VoNB) stood at ₹ 55.48 billion, with 9% growth
  • Value of New Business Margin (VoNB) stood at 28.1%
  • Dividend of 27% declared in FY 2024
Stability and Profitability

  • Robust Solvency Margin of 1.96 vis-à-vis regulatory requirement of 1.50
  • Profit After Tax (PAT) stood at ₹ 18.9 billion, with 10% growth YoY
  • Net worth of ₹ 149.06 billion
  • Zero Debt company with healthy reserves
Well-positioned to Maintain Steady Growth and Long-term Consistent Returns

Remained focussed on growing the business at a sustainable rate

Offered a varied product basket to align with customer demand

Created a balanced distribution mix

Maintained best-inclass cost ratio and persistency levels

During the year, we continued to take further strides towards our goals on profitability and sustainable growth. We are also one of the most profitable private life insurers in India and are constantly looking to improve our operational efficiencies and our financial robustness.

We successfully maintained new business thrust and delivered enduring performance, and continue to be the market leader across individual and total business. The Company issued 22.6 lakh policies in FY 2024, reflecting our intent to increase penetration and achieve holistic growth. Our performance also demonstrates our distribution strength and expansive outreach to customers in a cost-efficient manner.

With a strong focus on operational excellence, stakeholder value creation, and sustainable growth and profitability, we are not only thriving in an ever-evolving insurance landscape, we have also emerged as a leader in the private insurance space.

Total New Business Sum Assured grew 25% YoY, outperforming the private insurance industry, registering 19% growth, and also outperforming 22% overall industry growth.

Maintaining Operating Efficiency

We are constantly looking to improve our operational efficiencies. The Company’s OPEX ratio stood at 4.9% for the year ended March 31, 2024, while Total Cost Ratio stood at 8.9%. This year again, we reported an improvement in our persistency ratio in individual regular premium, which is a vital indicator of our performance, and highlights the commitment of our customers to renew their policies.

The 13th month persistency of Individual Regular Premium stands at 86.8%. Its 13th and 61st month persistency improved by 126 basis points and 295 basis points, respectively, indicating policyholders’ satisfaction with products and services. It presents the percentage of its persistent policyholders paying renewal premium to renew their policies on a yearly basis.

Delivering Shareholder Value

A steady upward trajectory in our net worth reflects our commitment to financial strength and value creation instilling confidence in our esteemed shareholders

Actions to Ensure Steady Growth and Consistent Returns for Shareholders
Responsible Investment

We consider ourselves long-term stewards of our customers’ assets. We also recognise our responsibility to effectively integrate associated considerations into investment decisions, helping finance a more sustainable economy. Our investment activities help our customers today and over the long term. As a life insurer, we remain committed to servicing our customers’ evolving needs, providing product solutions that support their financial resilience and enabling them to face the future with confidence.

New Business Premium (%)
Individual New Business Premium (%)
Individual Rated Premium (%)
Individual Policies (%)
Solvency: Cushioned to Support Future Growth Prospects
Net Worth: Zero Debt Company with Healthy Reserves (₹ in billion)

DELIVERING GROWTH AND ACQUIRING MARKET SHARE

Delivering Growth (₹ in billion)
No. of Policies (in million)

GAINING MARKET SHARE

Individual Rated New Business Premium (%)
Market Share in Individual Policies (%)

GROWTH IN PORTFOLIO

Individual Savings (₹ in billion)
Protection (₹ in billion)
Annuity (₹ in billion)
Measuring our Performance

INCOME


PROFITABILITY

VoNB and VoNB Margin

VALUE OF LIFE INSURANCE COMPANY

Indian Embedded Value (₹ billion)

QUALITY OF BUSINESS

Persistency Ratio* (%)

*Persistency Ratio - Premium Basis (Regular Premium/Limited Premium Payment under Individual Category) Term policies of only Individual Segment


OTHER FINANCIAL PARAMETERS

Profit After Tax (₹ billion)

COST RATIOS

Commission Ratio (%)

Assets Under Management (₹ billion)
OPEX Ratio (%)

SHAREHOLDER SURPLUS (₹ billion)

Total Cost Ratio1 (%)

1 Total cost ratio is operating expenses including commission, provision for doubtful debts and bad debts written off divided by Gross Written Premium; Components may not add up to total due to rounding of

Key Goals for FY 2025

Consistent and sustainable business growth

Maintaining balanced product mix

Augmenting shareof high-margin protection business

Maintaining operating efficiencies (cost ratios and improving persistency)

Increased digitalisation for superior customer experience, distributor development and employee engagement

Effective risk management

Maintaining a consistent dividend policy

SBI Life’s consistent focus on profitability facilitates holistic value creation. Its culture of excellence enables us to identify the latent needs of our customers and venture into new market segments and product variants ensuring customer needs are met.

Shikha Tomar Vice President, Product Management

I live outside Kolkata and Ms. Sengupta Ghosh of SBI Life insurance Kolkata contacted me over phone and email regarding the maturity of my life insurance policy. I am very happy to say that I received the payout due to her efforts.

B. G. Samanta West Bengal, General Manager