Why is financial capital critical to our sustained growth?

A strong financial foundation empowers the Company to support the aspirations of every Indian, ensuring that it can deliver on the promises, today and tomorrow. It allows SBI Life to weather market uncertainties, fund innovations, scale operations and offer reliable, future-ready solutions to the policyholders.

By combining disciplined capital management, prudent investment strategies and operational efficiency, we continue to build financial resilience that powers inclusive growth, protects long-term commitments and creates enduring value for all stakeholders.

UNSDGs Aligned

Scaling Business Growth and Market Leadership

SBI Life achieved steady premium growth driven by individual segment and prudent distribution focus. Individual APE rose by 13%, backed by double-digit growth in agency and steady contribution from banca, reinforcing measured business expansion.

With the purpose to measure long-term improvement and value creation, the Company is comparing FY25 with FY22 to provide a meaningful three-year view to assess strategic progress.

Value Creation for Stakeholders

SBI Life continued to create sustainable long-term value, with Embedded Value growing at a Y-o-Y growth of 21%. Even in a dynamic operating environment, the Value of New Business (VoNB) remained stable, supported by value accretive product portfolio and consistent margin delivery. This performance reflects the enduring strength of our business fundamentals and commitment to value creation.

Driving Profitability with Robust Returns

The Company’s profitability trajectory remained strong, underpinned by growth across all key metrics. Assets Under Management rose at an impressive CAGR of 19%, while Net Worth expanded steadily at 13.5% CAGR. Profit After Tax increased at a 17% CAGR over the three-year period, reflecting prudent risk management, consistent fund flows and improved operational leverage. Besides, value delivered to shareholders expanded meaningfully during the period, with surplus growing at a CAGR of 10.5%.

Prudent Capital Management with Persistent Policy Portfolio

SBI Life continued to maintain a strong capital position, with solvency levels comfortably above regulatory requirements and with zero debt capital. Our ability to retain policyholders improved further, as seen in the 13th month persistency improving from 85.2% to 87.4% over FY 2022 to FY 2025. These indicators underscore our focus on portfolio quality, long-term customer relationships and disciplined capital deployment.

1. Persistency Ratios are calculated using policies issued between 1^st March to 28^th/29^th February of the relevant years.

2. The persistency ratios for FY25 are calculated as per IRDAI circular IRDAI/NL/MSTCIR/RT/93/6/2024 dated June 14, 2024.

3. The persistency ratios are calculated as per IRDAI circular no. IRDAI/F&A/CIR/MISC/256/09/2021 dated September 30, 2021.

Driving Operational Efficiency

Operational metrics remained well within efficient thresholds despite business expansion. While there was a marginal increase in commission and operating expense ratios, this was in line with the evolving product mix and distribution strategy. SBI Life continues to balance growth with efficiency, investing in scale while maintaining cost discipline. The Company maintains one of the lowest cost ratios in the industry.