SBI Life Insurance Company Ltd. share price target

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...

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,...

We maintain a Buy with a target price of Rs 1076 (2.6xFY23E EV).

SBI Life Insurance reported a mixed performance wherein premium accretion was healthy but higher actuarial liability offset investment income, led to lower than expected surplus and earnings. AUM growth accelerated 28% YoY to | 209500 crore. Shareholders and policyholders (excluding linked liabilities) assets witnessed healthy growth at ~24% and ~21% YoY, respectively. Recovery in equity market and decline in yields led to strong investment income at | 12777 crore (up 213% YoY) in Q3FY21, supporting total revenue trajectory. Commission expenses...

SBI Life delivered a 7% de-growth in APE on 9MFY21 basis v/s 14% de-growth in H1FY21 on back of 13% NBP YoY. Margins also improved by 50bps to 19.3% from H1 to 9M mainly on higher share of non-PAR especially led by individual protection. Although, in our view, despite mix change & decent volumes margin improvement was slightly slow, offset by faster recovery in ULIPs. Looking from 9MFY21 we increase our estimates with 3% APE growth and margin tailwind from (i) conservative operating assumptions (ii) repricing of certain products especially protection which could see volumepricing impact and (iii) improving growth, helping deliver closer to 20% VNB margins and 19% growth in ROEV for FY21 with tailwinds of same continuing...

SBILIFE posted a rebound in business premium with individual APE growing at 14% YoY in Oct'20 after reporting a consecutive decline for the past many months. During 2QFY21, the ULIP business declined 13% YoY but grew 166% QoQ from the troughs seen earlier. Protection growth remains robust both in individual and group segments and is expected it to remain strong. The revival in credit growth, with parent SBIN indicating that the retail disbursement run-rate is now higher than pre-COVID levels, further augurs well for SBILIFE. The company reported an improvement in persistency rate across cohorts, with...

The company has posted 27% growth in net premium collection to Rs 12857.95 crore in Q2FY2021, aided by 28% growth in the renewal business to Rs 7150 crore, while new business premium also jumped 27% to Rs 5940 crore in Q2FY2021. New Business APE eased 4% to Rs 2710 crore in Q2FY2021 from Rs 2810 crore in Q2FY2020. The Value of New Business (VoNB) fell 2% to Rs 510 crore in Q2FY2021, while VoNB margins...