SBI Life Insurance is scheduled to release its Q4FY25 results on Thursday, April 24, and early indicators suggest a mixed performance. According to Zee Business estimates, the insurer’s first-year premium (FYP) has declined by 11.4 per cent year-on-year to approximately Rs 3,871 crore a sharp drop that signals pressure in new policy subscriptions during the March quarter.
However, the insurer’s Annualised Premium Equivalent (APE), a key growth metric, is expected to show a modest improvement of up to 8 per cent year-on-year. Analysts attribute this to a low base in the year-ago quarter and continued traction in high-margin non-par savings products.
Margins may shrink even as topline holds steady
While the topline appears stable, 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 per cent YoY but down 17.2 per cent quarter-on-quarter. VNB is seen declining to Rs 1,480 crore, down 1.7 per cent YoY and over 21 per cent sequentially. Margins could contract to 25.7 per cent, compared to 28.2 per cent last year.
Yes Securities offers a more conservative view, estimating flat APE at Rs 5,347 crore. It sees VNB at Rs 1,444 crore, down 4 per cent both YoY and QoQ. Still, Yes projects a slight 5 basis points improvement in VNB margins on the back of a favourable product mix. The brokerage maintains a ‘Buy’ call with a price target of Rs 1,920.
Key monitorables
With growth in new business premiums slowing and margins under pressure, the management’s commentary on product strategy, cost controls, and the performance of the bancassurance channel will be in focus. Investors will also be keen to hear how the insurer plans to navigate into FY26 amid a challenging demand environment.
As it stands, SBI Life is likely to deliver steady APE growth, but weaker profitability metrics could weigh on sentiment post-results. The Street will watch closely to see if the insurer can turn premium pressures into long-term gains.
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