HDFC Securities' research report on SBI Life Insurance
SBILIFE’s adj. VNB came in 3% below the estimate at INR14.5bn (+19% YoY), as VNB margin moderated 483bps QoQ to 26.6% on the back of a higher share of ULIPs in the mix (65%). While the management continues to remain upbeat about growth in the NPAR savings business (+3% QoQ), we continue to watch out for stronger sequential trends. The company's three growth levers stay in place: (1) SBI’s massive distribution network (24k+ branches); (2) a healthy mix of protection and NPAR; and (3) the lowest opex ratio among peers (9MFY23: 9.7%).
Outlook
We expect SBILIFE to deliver a healthy FY22-25E APE/VNB CAGR of 17/22% and retain BUY with an unchanged TP of INR1,850 (3x Sep-24E).