Street View - India's SBI Life Insurance to continue market dominance

Sbi Life Insurance

29/04/2024 05:52

** SBI Life Insurance's  SBIL.NS  reports value of new
business margin of 28.1% in FY24 from 30.1% in FY23, hurt by
higher share of low-margin unit-linked insurance plans
        ** ULIP segment made up 60% of its overall product mix
by annualised premium equivalent from 55% a year earlier
  
        ** At least 10 analysts raise PT; avg rating at "strong
buy" and median PT at 1,740 rupees; shares up as much as 3.2%
  

LIMITED MARGIN COMPRESSION AMONGST PEERS
    ** Emkay Global Financial Services ("buy," PT: 1,800 rupees)
says co had limited margin compression compared to peers despite
being a ULIP-heavy player
    ** Expects VNB margin of ~28.5% for FY25-26
    ** BOB Capital Markets ("buy," PT: 2,040 rupees) expects the
"top pick" co to continue its market dominance
    ** However, it trims VNB margin FY25/FY26 estimates by
100/150 bps at 27.5%
    ** Nirmal Bang Institutional Equities ("buy," PT: 1,785
rupees) expects VNB margin to improve to ~28.4% in FY25 as co
focuses on growth in non-ULIP portfolio

 (Reporting by Dimpal Gulwani in Bengaluru)
 ((dimpal.gulwani@thomsonreuters.com))