Q1 FY23 Preview: SBI Life Insurance: APE seen at Rs28.0 billion; VNB at Rs7.3 billion

27 Jul 2022 , 02:31 PM

Result date: 28th July
Recommendation: Buy
Target Price: Rs1510

Analysts at IIFL Capital Services forecast Annualized Premium Equivalent of Rs28 billion for SBI Life Insurance in the June quarter. This will be a y-o-y growth of 73%. Value of New Business (VNB) is forecasted at Rs7.3 billion. This will be a y-o-y growth of 86.8%. VNB margin is forecasted to stand at 26%. This will be a y-o-y increase of 190 basis points. Retail non-participatory savings plans and group protection plans are likely to be the key drivers of growth for the company.

Key management insights to look into:

• Outlook on growth across segments
• Comments on pricing of retail protection policies
• Update on distribution strategy

	June 2023 estimate	Y-o-Y growth
New business premium (Rs bn)	55.9	67.1%
Renewal premium (Rs bn)	57.9	15%
Total APE (Rs bn)	28	73%
Savings APE (Rs bn)	24.7	76.2%
VNB (Rs bn)	7.3	86.8%
VNB Margin	26%	190 bps

Source: IIFL Research