SBI Life Q3 profit rises marginally on higher premium collections

SBI Life Insurance reported a nearly 5% year-on-year increase in net profit for the third quarter ended December 31, supported by stronger premium collections as tax cuts boosted retail demand for insurance products.

The insurer’s net profit rose to ₹577 crore during the quarter, compared with ₹551 crore a year earlier.

Industry analysts said demand for life insurance products picked up in the December quarter after taxes on life insurance premiums were reduced to zero from 18% earlier, encouraging higher customer participation.

SBI Life’s net premium income grew 22% year-on-year to ₹30,245 crore. One-time premium collections increased 24%, while renewal premiums from existing policies rose nearly 21%, reflecting sustained customer retention.

However, the company’s expenses also rose sharply during the quarter. Management expenses climbed over 45% to ₹3,519 crore, driven by a 28% rise in commissions paid and a 36.6% increase in employee-related costs.