SBI Life Insurance Company vs Star Health Q4 FY26

SBI Life delivered a strong FY26 with new business premium of INR 425.5 billion (+20% YoY) and PAT of INR 24.7 billion (+2% YoY, or +29% excluding one-time impacts). Growth was driven by balanced product mix (ULIP 65%, protection 9%, par 7%) and multi-channel distribution, with bancassurance contributing 60% of APE and agency growing 15%. VNB margin held at 27.5% (29% ex-GST), within the guided 26-28% range. Management guided for ~14% APE growth and maintained VNB margin guidance of 26-28%. Key risks include potential regulatory changes on bancassurance open architecture and cost pressures from GST and labor law impacts.

Guidance read

APE growth target of ~14%: Management guided for annual APE growth of around 14% for the coming years, consistent with historical CAGR. VNB margin guidance of 26-28%: Management expects VNB margin to remain in the 26-28% range, absorbing GST impact through product mix improvement. Deferred annuity product launch by June 2026: Company plans to launch a regular pay deferred annuity product in Q1 FY27 to complete annuity product suite.

Risk read

Key risks include Regulatory risk on bancassurance open architecture — Government/regulator may mandate open architecture for banks, potentially impacting SBI Life's bancassurance channel which contributes 60% of APE.; Cost ratio pressure from GST and labor law — OpEx ratio increased from 5.3% to 6.1% due to GST and labor code impacts; full-year GST effect may keep costs elevated.; Equity market volatility impacting ULIP demand — Recent geopolitical events and equity market volatility could dampen customer appetite for ULIPs, which constitute 65% of individual APE..

Promise ledger

Of 2 tracked promises, management 0 met, 0 close, 1 missed, 1 delayed.

Star Health delivered a strong operational turnaround in Q4 FY26, with fresh retail growth surging 38% YoY on an N basis and overall GWP reaching ₹6,259 crore (+17% YoY). Underwriting profit jumped 200% YoY to ₹186 crore, driven by a 270bps improvement in combined ratio to 95.7% and a 400bps reduction in loss ratio to 65.2%. The retail loss ratio improved for the third consecutive quarter, aided by disciplined pricing, portfolio recalibration, and enhanced fraud management. However, a ₹558 crore mark-to-market loss from equity market volatility dragged reported PAT to a loss of ₹42 crore. Management guided for sustained loss ratio improvement through continued price hikes and wellness initiatives, targeting a normalized ROE of 13.1%. Key risk: a resurgence in seasonal claims or higher medical inflation could pressure loss ratios.

Guidance read

Target 1 million agents in 2 years: Management aims to grow agent count to 1 million within the next two years, adding ~1 lakh agents annually. Continue annual price hikes across products: Star Health will maintain its strategy of annual price increases on all products, with no abnormal hikes expected. Sustained loss ratio improvement expected: Management expects loss ratios to continue improving due to pricing actions, wellness initiatives, and portfolio mix.

Risk read

Key risks include Seasonal claims volatility — A recurrence of vector-borne diseases or higher seasonal claims could pressure loss ratios, as seen in prior years.; Medical inflation and claim severity — Rising healthcare costs and claim severity may require higher-than-expected price hikes to maintain margins.; Regulatory EoM compliance for peers — Non-compliance by other insurers with expense of management limits could create competitive distortions, though Star Health is compliant..

Promise ledger

Scorecard data is being built as historical quarters are processed.