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 a mixed Q3 FY23. Annual premium equivalent grew 19% YoY (7% beat), whereas value of new business margins contracted 374 bps QoQ to 27.8% due to higher growth in unit linked insurance plan. Shareholders' profit after tax declined 16% YoY to Rs 3.0 billion (29% miss).
Among segments, annuity saw a healthy growth of 17% YoY, while non-par savings grew 75% YoY in Q3 FY23. Growth in the protection business was modest at 10% YoY, while the ULIP business saw healthy sequential growth.
We lower our VNB margin estimates by 160-170 bps for FY23-25 and expect VNB margins to remain at ~30% in FY25.
We expect SBI Life to deliver a 25% compound annual growth rate in APE over FY22-25, thus enabling a 32% VNB CAGR. Return on embedded value is expected to stay around ~20-22%.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
