SBI General Insurance Q3 FY26: Steady Earnings Growth Amid Elevated Claims Intensity

10 February 2026

• Financial Performance (Q3 FY26 vs Q3 FY25): SBI General Insurance Company Ltd reported a moderate improvement in profitability in Q3 FY26, supported by higher premium volumes and stable investment income. Net premium earned increased by 10.3% year-on-year (YoY) to ₹2,40,993 crore, compared to ₹2,18,516 crore in Q3 FY25, driven by growth across motor and health insurance segments. Total income (including investment income and other income) also improved during the quarter, aided by steady investment returns. Profit After Tax (PAT) rose by 12.2% YoY to ₹100.8 crore, compared with ₹89.8 crore in the corresponding quarter last year, reflecting better underwriting performance and controlled expense growth despite elevated claims in certain segments. Earnings Per Share (EPS) increased to ₹4.50 from ₹4.02 in Q3 FY25, indicating improved shareholder profitability.
• Operational Metrics (Q3 FY26 vs Q3 FY25): Operational performance remained mixed during the quarter. The net retention ratio stood at 63.9%, lower than 67.1% in Q3 FY25, reflecting higher reinsurance cessions amid portfolio diversification. The combined ratio remained elevated at 114.7%, compared to 113.8% a year ago, indicating continued underwriting pressure driven by higher claims in motor and health lines. Claims experience showed some stress, with the net incurred claims ratio at 76.4%, though this represented an improvement over historical averages. Expense management remained disciplined, while the company maintained a strong solvency position, with the solvency margin ratio stable at 2.12x, comfortably above regulatory requirements.
• Strategic Developments: During the quarter, SBI General Insurance continued to focus on portfolio diversification and disciplined underwriting, with steady growth in motor and health insurance segments offsetting softness in certain crop and weather-related lines. The company maintained a strong capital base, with net worth increasing to ₹5,181 crore, supported by retained earnings. While underwriting margins remained under pressure due to claims intensity and competitive pricing, stable profitability, strong solvency buffers, and improving scale provide resilience. Management remains focused on enhancing underwriting discipline, optimizing reinsurance structures, and improving operational efficiency to support sustainable profitability over the medium term.