SBI Life Shares Dip Marginally Ahead of Q2 Results; Analysts Expect Strong Margins Despite Slower APE Growth

surance shares traded marginally lower on Friday ahead of the company’s September quarter (Q2FY25) earnings announcement. The stock slipped 0.25% to ₹1,848 on the NSE around 2:40 p.m., as investors turned cautious before the results. Despite the mild decline, analysts remain optimistic about the insurer’s operational performance, expecting strong profitability metrics driven by a favorable product mix and higher-margin segments. Brokerage firm Centrum Broking projects SBI Life to deliver the highest Value of New Business (VNB) margin among listed life insurers at around 27.5%, supported by the rising share of non-participating (non-par) policies. These policies—where policyholders do not share in company profits—typically offer better margins for insurers. Centrum highlighted continued traction in this segment, which could bolster overall profitability. Meanwhile, Emkay Global anticipates that Annual Premium Equivalent (APE) growth may remain subdued at approximately 4% year-on-year, citing a temporary slowdown linked to the festive season and softer momentum in unit-linked insurance plans (ULIPs). However, the brokerage maintains a positive view on SBI Life’s margin outlook, expecting healthy VNB growth led by higher contributions from non-par products. Prabhudas Lilladher and Emkay Global both noted that the impact of recent GST-related changes on the company’s cost structure and product pricing is likely to be limited, given SBI Life’s strong cost efficiencies and scale advantages.