SBI Life CEO Backs IRDAI’s Distribution Reset, Says FY27 Growth Target Is Within Reach
SBI Life remains confident of meeting its FY27 growth target as its CEO supports IRDAI’s proposed distribution reset and the changes it could bring to the insurance sector.
SBI Life CEO backs IRDAI’s distribution reforms, expressing confidence that the insurer can achieve its FY27 growth target despite changes in the insurance distribution landscape.
NEW DELHI – SBI Life Insurance Company has described the regulator’s proposed changes to insurance distribution as positive in concept and direction, and says it is confident of meeting its full-year growth target for FY27. Managing Director and CEO Amit Jhingran made the remarks while discussing the company’s July–September 2026 results. He said the insurer has already sent its suggestions on the reforms to the Insurance Regulatory and Development Authority of India (IRDAI) and is ready to adapt once the new framework takes shape.
SBI Life – Q2 FY27 results: profit up 10.9%, margin at the top of guidance
The insurer reported a standalone net profit of ₹549.23 crore for the quarter, up from ₹494.59 crore a year earlier. Net premium income rose 8.2% to about ₹26,877 crore, and the solvency ratio stood at 1.97, against a regulatory minimum of 1.5. For the first half, profit reached ₹1,274.17 crore, roughly 17% higher than the same period last year. The quarterly profit came in below some analyst estimates, and growth in annualised premium equivalent was moderate at around 7–8%.
The standout number was the value of new business (VNB) margin, which touched 29.2% in the quarter, an improvement of about 130 basis points on a year ago. That took the half-year margin to 27.9%, towards the upper end of the company’s 26–28% guidance range.
Management attributed the improvement mainly to a change in product mix, with more business coming from non-participating and annuity products. It also said about 70 basis points of the half-year margin gain came from movements in the yield curve. H1 VNB grew 19% to ₹3,270 crore, and embedded value rose 15% to ₹87,350 crore. Persistency improved across most buckets, though the 61st-month ratio slipped to 58.7%.
SBI Life: What the CEO said on reforms, growth and products
IRDAI released a consultation paper on 23 September, titled “Recalibrating Economics of Insurance Distribution”, with comments open until 25 October. It proposes replacing the current intermediary categories with three: distribution entities, distribution persons and market infrastructure institutions. It also suggests a five-year glide path that would lower the expense-of-management cap for life insurers to 12.5%, greater transparency on commissions, and a ban on compulsory bundling of insurance with loans. The proposals are not final rules. Jhingran said SBI Life will adjust to whatever regime emerges.
On growth, the company has reiterated its FY27 individual rated premium growth guidance of 14–15%. Individual rated premium grew 12% in the first half, and management expects the third quarter to be seasonally stronger. Two new non-participating products are in the pipeline, with launches expected in November and December, and these are expected to support second-half performance. The company said it will put more emphasis on non-participating sales while balancing premium growth against profitability.
The first-half business mix was 62% unit-linked (ULIP) and 38% non-ULIP, against a full-year target of 63:37 on an individual rated premium basis. Credit life accounts for less than 2% of the company’s business, which limits its exposure to the proposed curbs on loan-linked insurance sales.
