Dear Shareholders,

FY25 was a year of impact, growth and purpose.

At the intersection of regulatory evolution, shifting customer expectations and accelerating digital transformation, we responded with resilience and conviction. Our teams demonstrated outstanding agility, innovated fearlessly and scaled efficiently to make life insurance more accessible, supporting the dreams of every Indian.

The outcome was a standout year, marked by superior performance across all key parameters, setting a benchmark for the future. I am pleased that SBI Life achieved a 12.3% growth in Individual Rated Premium (IRP), exceeding the industry’s growth of 10.5%. This is a testament to the dedication of our teams, the trust our customers place in us and the effectiveness of our strategic execution.

Life Insurance at the Crossroads

Life insurance remains a cornerstone of financial resilience for individuals, families and businesses. The industry has evolved, thanks to increased private participation, regulatory support and digital advancements. IRDAI’s ongoing efforts to enhance inclusivity and affordability are reshaping the landscape.

Despite being one of the fastest-growing markets globally, insurance penetration in India remains low, with only 17% of household income directed toward life insurance, even as GDP rises. This provides a significant opportunity and responsibility to bridge the protection gap.

Encouragingly, regulatory developments such as flexible premiums, enhanced surrender values, policy loans and free-look periods are making insurance more attractive and customer-friendly. We welcome these steps and remain aligned with IRDAI’s vision of ‘Insurance for All’ by 2047.

Adapting to Evolving Customer Needs

Adaptability is embedded in our DNA. In FY25, we launched 13 new products and re-launched 20, including ULIPs, term plans, endowment and annuity products, all developed using deep customer insights. Our product suite now includes 33 offerings tailored for flexibility and value.

Flagship launches like SBI Life– Smart Future Star and SBI Life – Smart Platina Young Achiever, designed to support children’s aspirations, have seen remarkable success. Beyond product innovation, our customer-first philosophy ensures we go beyond compliance. With responsible selling practices and transparent engagement, we have maintained a low ULIP surrender ratio of 6.23% and improved our persistency levels. The 13^th month persistency stands at 87.41% and the 61^st month at 62.69%. As a life insurance provider, we remain committed to offering solutions for every stage of life.

Innovating to Make Insurance Frictionless

We are delivering in the present while paving the way for the future. We believe the future of insurance will be experienced, not sold. Our digital transformation efforts are driven by this belief, embedding intelligence and personalisation across every touchpoint. In FY25, 98.7% of individual proposals were submitted digitally, with 54% processed through automated underwriting.

AI-powered platforms like InsightGenie enabled real-time decisions. Ria, our intelligent chatbot, began integration with contact centres. Our chatbot and call centres supported record volume. These innovations are helping us redefine speed, personalisation and engagement.

We are investing in our digital strategy to transform into a more accessible, personalised and comprehensive life insurer for our customers. We offer solutions tailored to each customer's unique profile and life stage, utilising advanced analytics and artificial intelligence to enhance and personalise our relationships. Our commitment to understanding and meeting customer needs at every stage of their journey ensures that we provide the most relevant and effective solutions, fostering deeper connections and trust.

SBI Life’s focus on profitable growth, supported by a strong financial foundation, reflects its commitment to sustainable value creation for all stakeholders — policyholders, shareholders, employees and society.

Scaling to Serve India Better

Accessibility remains key to inclusion. We expanded our branch network by 70, targeting underserved regions, while strengthening our Agency model by improving onboarding, activation and productivity. As a result, we witnessed that Agency productivity was up by 15% (₹ 2.4 lakhs on Individual APE), resulting in Agency share going up by 256 bps to 30% of Individual APE. Bancassurance contributed 61% of APE, growing by 8%. On digital distribution, the launch of an individual protection product on SBI’s YONO has been transformational with over 162k+ policies issued through a frictionless, three-click journey.

Delivering Performance that Reflects Our Purpose

We issued 2.2 million new individual policies, expanding our in-force base to 12.6 million. Individual new business sum assured grew 43% to ₹ 2,769 billion. Our death claim settlement ratio rose to 99.40%, reinforcing trust. Gross written premium for the year was ₹ 849.8 billion (+4%), while Individual rated NBP was ₹ 193.54 billion (+12%). The 3-year CAGR is 15% (vs. industry 11%). The purpose was centred around:

• Providing financial security to individuals and families through life insurance
• Empowering customers to plan for their future with confidence
• Promoting financial inclusion by reaching underserved segments of the population

Profitable Growth with a Strong Financial Foundation

SBI Life’s focus on profitable growth, supported by a strong financial foundation, reflects its commitment to sustainable value creation for all stakeholders — policyholders, shareholders, employees and society. We remain focused on ensuring solvency and long-term stability, so that promises made today can be honoured decades into the future.

We continue to balance growth with prudence, consciously avoiding short-term risks that could undermine long-term trust. This purpose reinforces the Company’s role as a guardian of financial well-being, which is reflected in our robust financial performance with:

• Profit after tax of ₹ 24.1 billion (+27%)
• Operating expense ratio: 5.3%
• Total cost ratio: 9.7%
• AUM: ₹ 4.5 trillion (+15%), with 94% in AAA/Sovereign debt
• Solvency ratio: 1.96 (vs.regulatory 1.50)
• Value of New Business (VoNB): ₹ 59.5 billion with VoNB margin of 27.8%
• Embedded Value: ₹ 702.5 billion (+21%)
• A ₹ 2.70/share dividend was declared, resulting in an outgo of ₹ 2,705.7 million

Growing Responsibly and Sustainably

We are committed to building a resilient, inclusive and sustainable future. From paperless operations to AI-led efficiencies, our actions reflect our ESG priorities.

Transitioning to renewable energy sources, implementing energy-efficient practices in our branches and enhancing digital servicing are key initiatives that help us significantly reduce our environmental footprint. By embracing these sustainable practices, we not only contribute to the preservation of our planet but also demonstrate our commitment to responsible business operations.

Employee trust and motivation provide a competitive edge in both talent retention and acquisition, while also enhancing customer service. We are convinced that the success of SBI Life depends on our ability to attract and retain the best talent from a diverse pool of candidates. More innovation, better decisions, sharper customer focus, greater resilience and stronger business results are the outcomes of diversified minds. Gender diversity at 23% and inclusive hiring practices continue to foster a forward-looking culture.

During the year, ₹ 182 million was invested in education and healthcare initiatives through CSR, positively impacting over 53,000 lives. Our Responsible Investment Framework ensures that capital allocation aligns with long-term value creation. This journey is guided not only by ambition but also by responsibility. As we grow, we remain deeply committed to doing so in a manner that protects the well-being of all stakeholders.

Shaping Tomorrow: Regulatory and Market Outlook

We are aligned to IRDAI’s reforms that enhance customer value and industry viability.

Looking ahead, the Indian life insurance sector is well-positioned to outpace global growth. According to Swiss Re, while global life insurance premiums are expected to grow at around 3% annually through 2025-26, India’s market is projected to expand at a significantly higher rate of 6.9% between 2025 and 2029. By 2035, global life insurance premiums are anticipated to reach USD 4.8 trillion, with India emerging as a major contributor. These trends reaffirm our long-term optimism.

Beyond its economic role, the life insurance sector also plays a critical macroeconomic function by channelling household savings into long-term investments in infrastructure, capital markets and government securities, thus supporting national development goals.

As one of India’s leading life insurers, we are uniquely positioned to scale impact and unlock value.