SSBI LifeExecutive Cockpit

Cash 360

The treasury cockpit — 13-week premium cash flow, operating-surplus-to-free-surplus conversion, premium receivables, and solvency vs the IRDAI floor.

SBI Life Insurance Company Limited · FY26 (Mar'26, audited anchor)
India's #1 private life insurer by Individual NBP (25.5% private share) & IRP (22.9%)
29,344 employees · 1230+ own offices · 9 bancassurance partners
Executive read· the answer, then the moves

Solvency is strong at 1.90× — 0.40× above the 1.50 IRDAI floor — on a debt-free balance sheet generating ₹2,350 Cr of free surplus. Premium collection is fast at 14d; pull it to 12d to release ≈ ₹555.0 Cr and self-fund annuity & protection growth from internal surplus.

4 of 5 headline metrics improving vs prior · still off target: Net Cash / Free Surplus ₹2,350 Cr vs ₹3,000 Cr, Premium Collection Days 14d vs 12d, Policy Issuance TAT (days) 12d vs 8d

Do now — ranked by urgency
  1. 1
    Accelerate premium collection from 14d to the 12d targetWatch
    Why it matters

    Every day of collection above 12d ties up premium; closing the gap pulls ≈ ₹555.0 Cr of renewal cash forward.

    What's driving it
    • Collection 14d vs 12d target
    • Premium past grace (>60d) = ₹125.0 Cr of ₹3,885 Cr open premium
    FYI
    • Pulling laggard product families to 11d issuance TAT accelerates ≈ ₹484.0 Cr
    • Owner: Treasury / Renewals
  2. 2
    PAT optically flat on one-offsWatch
    Why it matters

    Surface the normalized walk in investor comms; same GST-ITC drag on VNB margin.

    What's driving it
    • PAT normalization
    • Signal: Alert
    FYI

    Reported PAT ₹2,470 Cr (+2%); underlying ~₹3,120 Cr (+29%) ex GST-ITC reversal & labour-code.

  3. 3
    Total cost ratio up 90 bpsWatch
    Why it matters

    Leverage EoM headroom & digital STP; protect the cost advantage.

    What's driving it
    • Total cost ratio
    • Signal: Alert
    FYI

    Cost ratio 10.6% (opex 6.1% + commission 4.4%) on GST-ITC & investment — still lowest among large peers.

  4. 4
    eShield Next (Protection) — early-year lapse elevatedWatch
    Why it matters

    Early lapse drags renewal premium & embedded value — quality-of-sale and targeted win-back are the levers.

    What's driving it
    • persistency 82% (below the 85% watch line)
    • Signal: Persistency
    FYI
    • Persistency 84→79→82%; first-year lapse 16%. Protection — higher early lapse; margin-rich, small premium.
    • Owner: Head — Persistency & Renewals
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Solvency ratio
1.90×
0.40× above 1.50 floor
Free surplus
₹2,350 Cr
above required solvency capital
Premium collection
14d
target 12d
Collection unlock
₹555.0 Cr
collection 14→12d
Exhibit 1

13-week premium cash flow forecast

Net weekly cash (bars) and ending cash (line) vs. ₹1,500 Cr minimum. Forecast trough: ₹2,650 Cr.

Above minimum
₹2,500 Cr
Opening cash
₹27,400 Cr
13-wk premium in
₹25,490 Cr
13-wk claims & opex
₹4,410 Cr
Closing cash
Exhibit 2

Operating surplus → Free surplus

₹6,670 Cr operating surplus converts to ₹2,350 Cr free surplus (35%).

Exhibit 3

Premium collected

Monthly, ₹ Cr.

Premium-to-cash

Collection & issuance days

Premium collection (DSO)14d
Policy issuance TAT12d
Claims & commission payable (DPO)(35d)
New-business cash cycle26d
Where new-business cash is held

Faster-issuance cash unlock

₹484.0 Cr

Pulling laggard product families to 11-day issuance TAT accelerates ~₹484.0 Cr of new-business cash.

Smart Bonus (Par)15d
₹178.5 Cr
Retire Smart (Annuity)14d
₹98.6 Cr
Smart Platina (Non-Par)13d
₹98.6 Cr
Smart Wealth Plus (ULIP)12d
₹93.2 Cr
eShield Next (Protection)12d
₹15.1 Cr
Collections

Premium receivable aging

Total open premium ₹3,885 Cr

Current days₹3,050 Cr
1-30 days₹520 Cr
31-60 days₹190 Cr
61-90 days₹85 Cr
90+ days₹40 Cr

Overdue (>60d) = ₹125.0 Cr.

Exhibit 4

Collections priority

Highest collection days first.

ChannelGWPCollectionLapse risk
CSC & Micro-insurance₹2,000 Cr16dMedium
Brokers & Corporate Agents₹5,000 Cr15dMedium
Agency (2.82 lakh agents)₹29,000 Cr14dLow
Bancassurance partners (9 banks)₹9,000 Cr13dMedium
SBI Bancassurance (parent 22,000 branches)₹52,000 Cr12dLow
Direct / Online₹4,290 Cr8dMedium
Exhibit 5

Cost-base payables

Settlement-cycle lever.

Cost partnerSpendDPOSLARisk
Commissions & distribution payouts₹4,457 Cr30d96%Medium
SBI bancassurance partnership fees₹2,500 Cr30d98%Low
Reinsurance (RGA / Munich Re / Swiss Re)₹900 Cr45d97%Low
Technology & digital (Policy Admin / CRM / cloud)₹820 Cr45d93%Medium
Medical, underwriting & verification services₹420 Cr40d92%Medium
Actuarial, audit, legal & consulting₹300 Cr50d95%Low
Exhibit 6

Solvency runway vs. IRDAI floor

Buffer above the floor

Solvency buffer

Solvency ratio vs 1.50 IRDAI floor
1.90×
buffer 0.40× above the IRDAI minimum — debt-free; funds annuity & protection growth from internal free surplus
Solvency Ratio1.9x
Price / Embedded Value (P/EV)2.3x
Solvency Buffer (vs 1.50 floor)0.4x
Renewal Collection vs Plan97.0%