SBI Life Insurance Company Ltd. share price target

Persistency improved across cohorts, with the highest improvement seen in 61st month (by 340bp YoY to 60.9% in 1HFY21), which aided growth in the Renewal business. The company continues to maintain cost leadership, with the total expense ratio declining to 7.7% (~220bp YoY improvement). 2QFY21 shareholders' PAT grew 131% YoY to ~INR3.0b (in-line). Overall, we expect SBILIFE to deliver 17% VNB growth over FY2023E. We further expect VNB margins to improve to ~21% and operating RoEV to...

and revival in the ULIP business. It continues to focus on extracting more from its bancassurance and agency channels. Limited presence on the online platforms, however, is a dampener. The stock trades at FY22E P/EV of 2.1x, which we find...

Valuation and Outlook: We have valued the stock based on 3.2x forward P/EV and 36.3x forward P/VNB with a premium of 1.02x and has arrived at a price target of Rs. 988 with a potentialupside of 13%. We rate the stock as HOLD'.

SBI Life Insurance Company Limited, is a joint venture between SBI and BNP Paribas formed in 2001, which offers individual and group insurance plans, including traditional and unit linked plans. Its products cover life, health,...

SBI Life Insurance Company (SBIL) was established as a JV between State Bank of India and BNPPC, an insurance subsidiary of BNP Paribas. SBI Life has a big advantage due to its bancassurance with State Bank of India. Diversified product mix

SBI Life Insurance (SBIL)'s VNB margins improved by 80bps YoY to 18.7% during Q1FY21. Improvement was led by increasing share of group protection plans and savings products. Absolute VNB de-grew by ~29.7% in Q1FY21 on account of lockdown. However, renewable premium witnessed growth of ~29.5% YoY.

SBI Life's overall APE declined by 35% YoY as FYP de-grew by 34% YoY and despite 30% growth in single premium. Renewal premiums were also better growing 30% YoY, although 13M persistency (regular pay) saw weakness by110bps at 82.6% over FY20, while other buckets saw improved trends. Overall APE was slower on slower protection growth both on individual & group (lower loan attachments), while growth has been led in group savings showing lower reflection in APE growth. Margins at 18.7% were slightly lower than expectation dragged by not passing re-insurance rate hikes which it will...

Offer for sale (OFS) issue details for SBI LIFE INSURANCE COMPANY LTD are as below. Issue Period: June. 15, 2020 Discount to Retail Investor: NA Cut Off Rate: Rs. 742.60/- Reservation: 10% of Offer size Outlook & Valuation: We believe the Indian Life Insurance industry is in a phase

Challenging Years Ahead for Industry Leader: SBILIFE's 4QFY20 performance was marginally below expectations, as NBP/APE declined 11.8/12.6% YoY due to the lockdown

SBI Life Insurance Company Limited, is a joint venture between SBI and BNP Paribas formed in 2001, which offers individual and group insurance plans, including traditional and unit linked plans. Its products cover life, health,...