Q3 FY23 Results Preview: SBI Life: VNB seen at Rs 16 billion; APE at Rs 52.6 billion

20 Jan 2023 , 03:10 AM

Analysts at IIFL Capital Services forecast a year-on-year (Y-o-Y) growth of 15% for total Annualized Premium Equivalent (APE) of SBI Life, in the December quarter. Value of new business (VNB) is likely to grow Y-o-Y by 37% in the quarter. VNB margin is expected to stand at 30.5% in the quarter. This will be a Y-o-Y growth of 490 basis points or 4.9%. The growth outlook for the company is healthy.

Important management insights to watch out for:

• Growth outlook across segments
• Margin drivers

Source: IIFL Research

	December quarter estimate	Y-o-Y
New business premium (Rs bn)	84.2	(0.9%)
Renewal Premium (Rs bn)	113.9	18%
Total APE (Rs bn)	52.6	15%
VNB (Rs bn)	16	37%
VNB margin	30.5%	4.9%