- 24 Jan 2022
- ICICIdirect Research
SBI Life Insurance reports healthy performanceSBILIFE - 1235 Change: 19.10 (1.57 %)
News: For SBI Life, Premium growth remained healthy at 31% YoY to Rs.18025 crore, led by 56.3% YoY traction in NBP to Rs.8503 crore. Growth in renewal premium continued to remain steady at ~14.4% YoY to Rs.9653 crore. Protection business (individual + group) continued to report strong growth at 26% YoY to Rs.2040 crore. Proportion of total protection NBP to total NBP stood at ~11% in 9MFY22. As a result of healthy growth in protection and annuity business, VNB margins improved to 21.9% from 19.3% YoY. The company registered a 56.3% YoY jump in net profit to Rs.364.06 crore compared to Rs.232.85 crore a year ago.
Views: In our view, new business premium and Renewal premium posted a robust growth leading to healthy topline numbers, while Income from investment remained muted on both YoY and sequential basis. While commission ratio continued to remained steady, with lower management expense ratio and decrease in Benefits paid aided to decrease in Total expenses. As a result, the PAT numbers were better than our estimate, and hence we maintain positive stance on the stock.