Cut in FY25 estimates likely to keep SBI Life stock under pressure

In Q2FY25, net profit grew 39 per cent Y-o-Y to Rs 530 crore and for H1FY25, it grew 38 per cent Y-o-Y to Rs 1,050 crore. The ULIP share in total APE increased to 65 per cent in Q2FY25

SBI Life Insurance reported a weak performance in Q2FY25. The annual premium equivalent or APE grew 3 per cent year-on-year (Y-o-Y) to Rs 5,390 crore. For the first half of financial year 2025 (H1FY25), it grew 9 per cent Y-o-Y to Rs 9,030 crore. The absolute value of new business or VNB declined 3 per cent Y-o-Y to Rs 1,450 crore. For H1FY25, VNB grew 3 per cent Y-o-Y to Rs 2,420 crore. VNB margins came in at 26.9 per cent as compared to 28.5 per cent in Q2FY24 and flat versus 26.8 per cent in Q1FY25.

 

The management expects