SBI Life Q4 results: SBI Life Insurance Co., a state-run insurance provider, recorded a 1% drop in its net profit for the January to March quarter of the financial year ended 2025-26, on falling income from investment operations on a year-on-year (YoY) basis in the same period.
NSE filings showed that SBI Life Insurance's net premium income (NPI) rose 16% to ₹27,683.79 crore in the fourth quarter of the financial year ended 2025-26, compared YoY with ₹23,860.71 crore in the same period a year ago, according to the financial statements.
Factors behind SBI Life's fall in profits
Although SBI Life Insurance's income from premiums was at ₹27,683.79 crore, the life insurance provider lost around ₹23,938.72 crore through its investment operations in the January to March quarter, according to the financial statements.
Every insurance company uses its assets under management (AUM) to invest in multiple asset classes, including equity markets, unit-linked insurance plans (ULIPs), and government securities, among others.
Due to the heavy investment in the financial markets, the company's 16% rise in NPI was offset by the rising losses from the investment options, in turn weighing down on the company's profits for the period, in line with the analysts expectations.
The NSE filings also showed that SBI Life's earnings per share (EPS) dropped by 10 paise to ₹8.02 apiece in the fourth quarter, compared to ₹8.12 apiece in the same period a year ago.
The filings also showed that the company's income from the non-par individual life segment and the linked individual life segment contributed to the highest mover in the fourth quarter, contributing to the overall NPI gains.
SBI Life Insurance shares
SBI Life Insurance shares closed 1.4% lower at ₹1,884.80 after Wednesday's stock market session, compared to ₹1,911.60 at the previous market close, according to NSE data. The company released its earnings after the market hours on April 22.
Shares of SBI Life have delivered stock market investors more than 106% returns on their investment in the last five years, and over 70% returns in the last three-year period, as per the exchange data. The company's stock was up 16% in the past one year.
On a year-to-date basis, SBI Life's shares have lost 7%, and have dropped 0.63% in the last one month period. The company shares were trading 4.36% lower in the last five market sessions.
Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.