SBI Life Insurance Co.'s net profit rose 71.2% year-on-year in the October-December quarter, thereby beating estimates.
The insurer posted a net profit of Rs 551 crore in the quarter ended Dec. 31, 2024. That compares with consensus estimate of Rs 436 crore of analysts polled by Bloomberg. In the year-ago period, the company posted a net profit of Rs 322 crore.
The net premium income during the quarter under review climbed 11.3% year-on-year to Rs 24,828 crore, compared to Rs 22,317 crore in the corresponding quarter of the previous fiscal.
SBI Life Q3 Results (Consolidated, YoY)
Net profit up 71.2% at Rs 551 crore versus Rs 322 crore. (Estimate Rs 436 crore)
Net premium income up 11.3% at Rs 24,828 crore versus Rs 22,317 crore.
APE up 13% Rs 6940 crore vs Rs 6130 crore
VNB up 11% Rs 1870 crore vs Rs 1680 crore
VNB Margin at 26.95% from 26.9% (QoQ)
Shares of SBI Life Insurance rose following the second quarter results as the insurer's bottom line surpassed estimates. The scrip was trading 2.47% higher at Rs 1,550.95 apiece, compared to a 1.77% decline in the benchmark Nifty 50.
The stock has risen 11.76% year-to-date, and by 8.39% over the past 12 months.
Out of 39 analysts tracking SBI Life, 33 have a 'buy' rating on the stock and four recommend a 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 25.3%.
Follow live updates on Q3 earnings here.
Earnings Conference Call Key Highlights
Maintains its individual APE growth guidance of 15-17% for FY25.
Bancassurance is expected to grow around 10% and agency at 30%.
VNB growth is expected to be slightly lower than APE growth in FY25.
Aims to maintain VNB margins in the 27-29% range in the long term.
Continues to focus on bancassurance while also diversifying its distribution channels.
Aims to increase the agency channel's contribution to overall business.
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