SBI Life Insurance Company has received an income tax assessment order demanding Rs 537.75 crore for the FY 2023-24, according to an exchange filing made by the insurer on Wednesday.
The total demand includes Rs 441.24 crore in tax and Rs 96.51 crore in interest, while no penalty has been levied. The order was issued by the Faceless Assessment Unit of the Income Tax Department and was received by the company on 11th March 2026.
The assessment order reportedly disallowed certain exemptions claimed by the company under Sections 10(15) and 10(23AAB) of the Income Tax Act. Additionally, some income was treated under Section 56 and the authority applied a corporate tax rate of 30% instead of the rate applicable under Section 115B.
Company Plans to File an Appeal
In its regulatory filing, the insurer stated that the order is appealable before the Appellate Authority and the company intends to challenge the assessment within the prescribed timeline.
The company also clarified that the tax demand is not expected to have any material adverse impact on its financial operations.
Profit Rises 5% in December Quarter
Despite the tax dispute, SBI Life Insurance Company reported steady financial performance in the quarter ended 31 December 2025.
The insurer posted a 5% year-on-year increase in net profit, which rose to Rs 577 crore, compared with Rs 551 crore in the same quarter last year.
During the quarter, net premium income grew 22% year-on-year to Rs 30,245 crore. One-time premium collections increased 24%, while renewal premiums from existing policyholders rose nearly 21%, indicating strong customer retention.
However, the company also saw a rise in operational expenses. Management expenses increased more than 45% to Rs 3,519 crore, mainly due to a 28% increase in commissions and a 36.6% rise in employee-related expenses.
Assets Under Management Cross Rs 5.1 Trillion
The insurer's assets under management (AUM) expanded 16% year-on-year to Rs 5,117.1 billion as of 31 December 2025, compared with Rs 4,416.8 billion a year earlier.
The investment portfolio maintained a 59:41 mix between debt and equity, with nearly 95% of debt investments placed in AAA-rated and sovereign instruments, reflecting a conservative investment strategy.
Strong Growth in New Business
SBI Life Insurance Company also reported robust growth in new business during the first nine months of FY26.
- Total new business sum assured surged 69% to Rs 10,833.6 billion
- Individual rated premium stood at Rs 166.8 billion, giving the company a 25.6% share of the private life insurance market
- Individual new business premium rose 13.5% year-on-year to Rs 225.5 billion
Overall, gross written premium increased 20% year-on-year to Rs 733.5 billion during the nine-month period, supported by 24% growth in single premium collections and 21% growth in renewal premiums.
SBI Life Insurance Company Ltd (SBILIFE) Share Price
Shares of SBI Life Insurance Company closed at Rs 1,931.10 on the BSE Ltd. on Wednesday, declining Rs 32.40 or 1.65% during the trading session.
The development will now be closely watched by investors as the insurer proceeds with its appeal against the income tax demand while continuing its expansion in India's growing life insurance market.
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