Group drags margins: Focus on agency channel positive; expect mid-teens APE and VNB growth in FY27F; maintain Buy

研报英文原文证据摘录

Group drags margins: Focus on agency channel positive; expect mid-teens APE and VNB growth in FY27F; maintain Buy

Global Markets Research

SBI Life Insurance SBIL.NS SBILIFE IN 26 July 2026

EQUITY: FINANCIALS

Rating Remains BuyGroup drags margins

Target priceFocus on agency channel positive; expect mid-teens APE Remains INR 2,440

and VNB growth in FY27F; maintain Buy

Closing price INR 1,859 24 July 2026VNB growth of 29% YY in 1Q27 is in line with our estimates; margins were a miss

• SBI Life reported VNB margin of 26.2% in 1Q27 which was dragged down (60bp) by large Implied upside +31.3%

group protection sale (APE up 313% yy). GST cut continued to drag VNB margins on yy basis

(110bp in 1Q27 vs 110-150bp past two quarters).Fig.7 Excluding this, VNB margin would Market Cap (USD mn) 19,314.4

have been 27.4% ADT (USD mn) 22.4

• Management has reiterated guidance of 14-15% yy growth on individual APE in FY27F and

margin of 26-28%. It has indicated that as group business slows down in the next three Relative performance chart

quarters and as GST drag goes away, margins should recover to its upper-end guidance.

Agency 2.0 strategy delivering well; no open architecture relief

• SBI Life launched agency 2.0 strategy in 1Q26 and yy growth momentum in agency APE since

3Q26 has been healthy at 24-28% (1Q27 growth was 24% yy). It added 34k agents in 1Q27

and added 11 new branches.

• Separately, in a recent media interaction (link), parent bank’s (State bank of India [SBIN IN ,

Neutral) chairman highlighted that it plans to sell only subsidiary companies’ products from SBI

branches. Thus, this eliminates any pressure on SBI Life’s banca channel.

High rider attachment in Ulips, strong sum assured trend leading to elevated expenses

Source: LSEG, Nomura