About SBI Life Insurance Company Ltd.
SBI Life Insurance Company is one of India’s leading life insurance providers, offering a wide range of protection, savings, and retirement solutions.
It was incorporated in 2000 and operates under the regulation of the Insurance Regulatory and Development Authority of India (IRDAI).
Life insurance is its core business, with products such as term plans, ULIPs, endowment, money-back, pension, and group insurance.
The company has a strong nationwide presence with 1,000+ offices, extensive agent networks, and bancassurance partnerships.
SBI Life is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif. It serves millions of customers across urban, semi-urban, and rural India, playing a key role in the country’s financial sector.
Objectives of this study
To calculate the beta of SBI Life Insurance Company and analyse its sensitivity to overall market movements.
Data Collection
The historical price data of SBI Life Insurance Company and the NIFTY 50 index was collected from an official financial website for the period 01/12/2024 to 30/11/2025. The data was further processed to obtain Friday closing prices for analysis.
Data Analysis
Y = a + bX = 17048.25 + 4.553945X
This equation explains the relationship between the Nifty 50 index and the equity of SBI Life Insurance Corporation Ltd. The positive sign of the coefficient indicates a direct relationship between the two variables. This means that when the equity value of SBI Life Insurance increases, the Nifty 50 also tends to increase, and vice versa. Specifically, if the equity of SBI Life Insurance rises by 1 unit, the Nifty 50 is expected to increase by approximately 4.5539 units.
The t-statistic for beta is 10.985 and the corresponding p-value is 1.89E-14, which is far less than the 1% significance level. Therefore, the beta coefficient is statistically significant. The R² value is 0.7240, indicating that 72.40% of the variation in SBI Life Insurance equity is explained by movements in the Nifty 50, while the remaining 27.60% is due to other factors not included in the model. The F-statistic is 120.67 with a very small significance value, showing that the overall regression model is statistically significant.
- Number of observations = 48
- R² = 0.7240
- F-value = 120.67
- Significance (p-value) = 1.89
References
Raut Akshay, Patil Sneha (2025) Financial Performance and Market Sensitivity of Life Insurance Companies in India: A Study of SBI Life Insurance Corporation Ltd, Issue Vol. 13 No. 2 (2025): Volume 13 Issue 2, 2025.
Conclusion
The regression analysis clearly indicates a strong and statistically significant relationship between the Nifty 50 index and the equity of SBI Life Insurance Corporation Ltd. The positive beta value confirms that movements in SBI Life Insurance equity are directly aligned with market movements represented by the Nifty 50. With an R² value of 0.724, a large proportion of variation in SBI Life Insurance equity is explained by the Nifty 50, highlighting the stock’s high sensitivity to overall market performance. The statistically significant t-statistic and F-value further validate the reliability of the model. Overall, the results suggest that SBI Life Insurance equity is strongly influenced by market trends, making the Nifty 50 a key determinant in understanding and predicting its price movements.