SBI Life Q2 Results Review - Annual Premium Equivalent, Value Of New Business Margins Inline: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.SBI Life Insurance Company Ltd. reported in-line performance in Q2 FY24. Annual premium equivalent grew 33% YoY (in line) while value of new business rose 20% YoY. Margin contracted 310 bp YoY to 28.5% as product mix shifted towards unit linked insurance plans. Profit after tax was flat YoY at Rs 3.8 billion (versus our estimate of Rs 4.2 billion; 10% miss).In terms of new business profit, the Group Savings posted a healthy growth of 70% YoY, while non-par savings declined 6% YoY in Q2 FY24.Protection and ULIP segments reported a robust growth of 37% and 39% YoY, respectively. We expect SBI Life to deliver a 20% compound annual growth rate in APE over FY23-25, thus enabling a 19% VNB CAGR. Return on embedded value is likely to stay at ~21-22%. We reiterate our 'Buy' rating with a target price of Rs 1,570 (based on 2.3 times March-25E EV)..Click on the attachment to read the full report:.SBI Life Q2 Results: Profit Rises, But Misses Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Life Q2 Results Review - Annual Premium Equivalent, Value Of New Business Margins Inline: Motilal Oswal

Maintains 20% APE growth and 28-30% VNB margin guidance.

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