Mumbai, October 28: SBI Life Insurance reported growth in key business indicators for the second quarter of FY27, with annualised premium equivalent (APE), value of new business (VNB) and new business premium increasing compared with the same period last year.
The improvement in these figures indicates stronger new business performance. Investors may closely watch SBI Life shares on Wednesday following the quarterly results.
APE Growth
SBI Life’s total annualised premium equivalent (APE) rose to ₹6,370 crore in Q2 FY27 from ₹5,950 crore in the corresponding quarter last year.
This represents an increase of ₹420 crore, or approximately 7.1%, year-on-year.
APE is an important indicator used to measure new business generated by life insurance companies. It includes annualised regular premiums and 10% of single premiums.
Business Value
The company’s value of new business (VNB) increased to ₹1,860 crore during the September quarter from ₹1,660 crore a year earlier.
This marks a rise of ₹200 crore, or approximately 12%, compared with the previous year.
VNB measures the estimated future profitability of new insurance policies issued during a particular period.
The increase suggests an improvement in the value generated from new policy sales.
Premium Increase
SBI Life’s new business premium climbed to ₹11,350 crore in Q2 FY27, compared with ₹11,080 crore in the year-ago quarter.
Also read: Kotak Mahindra Bank Q2 Profit Rises 26% To Rs 5,645 Crore; Net Interest Income Up 16%
The increase of ₹270 crore represents year-on-year growth of approximately 2.4%.
New business premium reflects premium income generated from policies sold during the reporting period.
Investor Outlook
Overall, SBI Life recorded growth across all three major business indicators during the second quarter.
The stronger VNB performance, alongside higher APE and premium collections, indicates positive momentum in new business.
However, investors should also examine the company’s net profit, revenue, operating expenses and other financial indicators before assessing its overall quarterly performance.
These figures alone do not establish whether the company’s profitability improved during the quarter.
