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SBI Life sees limited impact from IRDAI proposals as credit-life attachment remains below 50%

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SBI Life sees limited impact from IRDAI proposals as credit-life attachment remains below 50%

SBI Life sees limited impact from IRDAI proposals as credit-life attachment remains below 50%

The insurer will recalibrate its product offerings, operating expenses and commission structure once the guidelines are finalised, while viewing the IRDAI consultation paper as a constructive step towards strengthening the insurance ecosystem, improving transparency and enhancing policyholder outcomes.

SBI Life retained its FY27 IRP growth guidance at 14-15% despite slower Q2 growth, with H1 IRP rising 12% YoY.

VNB margin rose to 29.2% in Q2 from 27.9% in the previous quarter, aided by a shift towards non-PAR savings and annuity products.

Yield-curve movements contributed around 70 bps to H1 margin expansion, with the insurer planning to pass on part of the benefit through product repricing.

Q2 GWP rose 8% YoY to Rs 271.2 billion, while NBP grew 27% YoY and APE increased 7% to Rs 63.7 billion.

SBI Life Insurance expects limited impact from the proposed changes in the insurance framework, with management saying its existing business model is broadly aligned with the proposed framework. The insurer also expects to be among the least-impacted insurers, with the attachment rate for credit-life insurance on SBI loans currently below 50% and limited credit-life partnerships outside SBI. SBI Life will recalibrate its product offerings, operating expenses and commission structure once the guidelines are finalised, while viewing the IRDAI consultation paper as a constructive step towards strengthening the insurance ecosystem, improving transparency and enhancing policyholder outcomes, according to Axis Securities. Advt

The insurer retained its FY27 individual rated premium growth guidance of 14-15%, despite relatively subdued growth in the second quarter following stronger performance in the first quarter.


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