SBI Life Insurance Company Ltd. share price target

SBI Life Insurance reported strong growth on the premium front while controlled cost ratios, sequential decline in actuarial liabilities aided the company to have a healthy surplus and PAT. AUM growth accelerated 38% YoY to | 220870 crore. Shareholders and policyholders (excluding linked liabilities) assets witnessed healthy growth at ~26% and ~28% YoY, respectively. Assets held in lieu of linked products jumped ~48% YoY to | 116215 crore. Commission increased 29% YoY to | 585 crore while commission ratio remained steady at 3.8% YoY, QoQ,...

We maintain a Buy with a target price of Rs 1150 (2.6xFY23E EV), implying an upside of 20% from CMP.

SBI Life ended the FY21 with 6.6% of APE growth which grew 48% YoY/13% QoQ on back of 24% growth in New business premium in FY21 & 62% YoY/14% QoQ in Q4FY21. Strong top line and mix also enhanced margins to be better than expectations at 20.4% in FY21 (PLe: 19.9%) and implying 22.2% exit margin in Q4FY21 (PLe:21.2%). This led to a strong 20% YoY growth in absolute VNB. Strong growth was seen in non-par savings, individual protection, group business and recovery in ULIPs happening quarter to quarter. Going ahead, with non-par (both saving & protection) still at 23-24%...

The Value of New Business (VoNB) improved 63% to Rs 880 crore in Q4FY2021, while VoNB margins improved to 20.4% in FY2021 from 18.7% in FY2020. Individual rated premium (IRP) has rose 46% to Rs 3640 crore in Q4FY2021, while Individual...

SBI Life Insurance (SBILIFE) reported a robust quarter, with strong APE growth led by recovery in ULIP and continued strong traction in NonPAR/Annuity and Individual Protection. Also, it reported strong VNB growth of 93% YoY on an effective tax rate (ETR) basis with margins improving sharply to 27.7%. FY21 VNB margins improved to 23.2%. Persistency improved across cohorts, with 13th/61st month persistency improving 180bp/170bp YoY to 87.9%/61.6%. The company continues to maintain cost leadership, with the total expense ratio declining to 8.3% in FY21 (v/s 9.9% in FY20). The Embedded Value (EV) based on actual tax rate...

We re-iterate BUY with a target price of Rs 1035.

IPru Life posted a 7% YoY growth on overall APE and 6% on individual APE, a first positive growth in 13 months. On FYTD21 new business de-grew -27% and is likely to end in negative growth for second consecutive year. IPru Life...

SBI Life Insurance Company (SBIL) was established as a JV between State Bank of India and BNPPC, an insurance subsidiary of BNP Paribas. We recommend Buy with target price of Rs 1,011.

During Q3FY21, Cost ratios and margins improve, beats estimates SBI Life Insurance Company has posted 40% decline in the net profit to Rs 232.85 crore in the quarter ended December 2020 (Q3FY2021). The company has posted 18% growth in net premium collection to Rs 13766.49 crore in Q3FY2021, aided by 24% growth in the renewal...