SBI Life Insurance Ltd: Value Pick Stock August 2019, Update
Update
Q1 FY 2022-23 Numbers
SBI Life Insurance – one of the most trusted life insurance companies in India has posted its Q1 FY23 numbers today. Here are the highlights –
New Business Premium (NBP) of the company grew by 67% to 5590 Cr in Q1 FY23 largely driven by strong growth in regular premium business, up by 83%
Protection New Business Premium has increased by 63% from 430 Cr in Q1 FY 22 to 700 Cr in Q1 FY23 mainly due to growth in individual protection business, up by 55% to 200 Cr and growth in group protection business by 66% to 500 Cr in Q1 FY23.
Gross Written Premium (GWP) of the company grew by 35% to 11350 Cr in Q1 FY23 mainly due to 83% growth in First Year Premium (FYP) and 14% growth in Renewal Premium (RP) in Q1 FY23.
The Company has maintained its leadership position in Individual Rated Premium of 2580 Cr with 24.0% private market share in Q1 FY23.
Cost
Total Cost ratio for Q1 FY23 is 11.2% v/s 10.5% for Q1 FY 22
Commission ratio for Q1 FY23 is 4.6% v/s 3.2% for Q1 FY 22
Operating Expense for Q1 FY23 is 6.6% v/s 7.2% in Q1 FY 22
Profitability Ratios
Profit after Tax (PAT) of the company grew by 18% to 260 Cr for Q1 FY23.
VoNB (Value of New Business) increased by 130% to 880 Cr for Q1 FY23.
VoNB margin of SBI LIFE is increased by 665 bps to 30.4% in Q1 FY23.
Assets Under Management (AUM)
AUM of the company grew by 13% from 2,31,560 Cr on as on June 30, 2021 to 2,62,350 Cr as on June 30, 2022 with debt to equity mix of 73:27. Over 97% of the debt investments are in AAA and Sovereign instruments.
Financial Position
SBI Life’s net worth increased by 11% from 10580 Cr as on June 30, 2021 to 11760 Cr as on June 30, 2022.
Solvency ratio of the company is 2.21 as on June 30, 2022 as against the regulatory requirement of 1.50 indicating strong financial position of the Company.
Daily Chart –
Shares of SBI Life ends at INR 1192.75 (UP 3.78%) with a volume of 10,43,318 on the NSE.
SBI Life is a value pick stock of FINBLAB (50% returns in 3 years)
Final Comment: The Company has posted reasonably good set of numbers compare to its peers. Finblab maintains a Positive view on the company.
Also Read: Q1 Numbers of Dr.Lalpath Lab
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15 October 2015
Update: Q2 Results FY 2019-20
The Board of Directors of SBI Life Insurance Company Limited approved its audited financial results for the quarter and half year ended September 30, 2019, following its meeting on Tuesday, October 15, 2019 after the market hours.
The company has posted a 48.2% (y-o-y) drop in its September quarter net profit to INR 129.84 Cr versus INR 250.53 Cr. The quarter-on-quarter (q-o-q) profit also decreased by 65.09%.
Business Growth:
- New Business Premium (NBP) has shown strong growth increased by 40% from 55.7 billion in H1 FY 2019 to 78.2 billion in H1 FY 2020.
- Individual rated premium (IRP) has increased by 22% from 34.1 billion in H1 FY 2019 to 41.8 billion in H1 FY 2020.
- Individual New Business Premium has increased by 30% from 37.2 billion in H1 FY 2019 to 48.5 billion in H1 FY 2020.
- New Business APE increased by 26% from 37.0 billion in H1 FY 2019 to 46.7 billion in H1 FY 2020.
Cost Efficiency:
- Total Cost ratio has decreased to 10.4% in H1 FY 2020, from 12.0% in H1 FY 2019.
- Commission ratio has decreased to 3.9% in H1 FY 2020, from 4.1% in H1 FY 2019.
- Operating Expense has decreased to 6.5% in H1 FY 2020, from 7.8% in H1 FY 2019.
Profitability:
- Value of New Business (VoNB) increased by 32% to 8.5 billion in H1 FY 2020.
- VoNB margin increased by 80 bps from 17.3% in H1 FY 2019 to 18.1% in H1 FY 2020.
- Value of New Business (VoNB) increased by 33% to 9.4 billion for H1 FY 2020 (with effective tax rate).
- VoNB margin increased from 19.2% for H1 FY 2019 to 20.2% for H1 FY 2020 (with effective tax rate).
Asset Under Management:
AUM has grown by 23 percent from 1,261.7 billion as on September 30, 2018 to 1,547.6 billion as on September 30, 2019 with debt-equity mix of 77:23. 90% of the debt investments are in AAA and Sovereign instruments.
Financial position:
The Company’s net worth increased by 14% from 70.9 billion as on September 30, 2018 to 80.7 billion as on September 30, 2019.
The solvency ratio as on September 30, 2019 was at 2.20 as against the regulatory requirement of 1.50.
The stock ended more than 1 percent higher to INR 838.05 when the market closed.
SBI Life Insurance Ltd is one of the leading Life Insurance companies in India. The Company is a joint venture (JV) between India’s largest bank State Bank of India and the leading global insurance company BNP Paribas Cardif.
SBI Life Insurance: History
Incorporated in the year 2000, SBI Life Insurance Ltd is India based private Life Insurer Company.
SBI Life Insurance Ltd is a joint venture between India’s largest commercial bank (SBI) and an insurance subsidiary of BNP Paribas Cardif (BNPPC).
SBI owns 70.1% of the total capital in SBI Life while BNP Paribas Cardif owns 26% of the total capital in SBI Life.
Must Read: Successful Equity Investing: 10 Tips For Beginner
SBI Product Portfolio
SBI Life has the product a portfolio of 37 individual and group products, including a range of protection and savings products to address the insurance needs of various customer segments.
- Know more about sbi life insurance child plan
- More details on sbi life insurance money back plan
- Details on sbi life insurance pension plan
Distribution Network
The Company has developed a multi-channel distribution network comprising bank branches of SBI and its associated banks, individual agent network (93,849 agents) and other distribution channels including direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries.
Market Share
The Company has also increased its market share of New Business Premium generated among private life insurers in India, from 15.87% in Fiscal 2015 to 20.04% in Fiscal 2017.
Network
The company has a diversified distribution network of 174,753 trained insurance professionals and wide presence with 922 offices across the country, comprising of a bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing forms, web aggregators and direct business.
Listed On
The shares of SBI Life are currently listed at Bombay Stock Exchange (BSE); CODE 540719 and National Stock Exchange (NSE) as SBILIFE
Quarterly Numbers:
The Company posted a 5% Y-o-Y growth in its June quarter (Q1) net profit at INR 372 Cr. This was due to a 52% Y-o-Y growth in its new business premium in Q1.
SBI Life’s new business premium stood at INR 3,154 Cr for Q1.
The company’s solvency ratio stood at 2.17 as on June 30 as against the regulatory requirement of 1.50.
The Company’s AUM also continued to grow at 22% to INR 1,46,954 Cr as on June 30, 2019. The debt-equity mix stood at 77:23. Of this, 90% of the debt investments are in AAA and sovereign instruments.
Stock Info – SBI Life Insurance
Share Holding Pattern
Financials – SBI Life Insurance
Conclusion
SBI Life is one of the largest life insurer with a consistent track record of rapid growth.
The Company recognized as among the Most Trusted Brands by The Economic Times Brand Equity – Nielsen survey in Fiscal 2017 for the 6th consecutive year.
Promoters of the company are having more than 65% stake with zero percent pledge shares.
Along with this, some of the top institution like CANADA PENSION PLAN INVESTMENT BOARD, ICICI PRUDENTIAL VALUE FUND, CA EMERALD INVESTMENTS, MACRITCHIE INVESTMENTS PTE LTD and VALUE LINE PTE LIMITED is having more than 1% stake in the company.
On the technical front, the share price of SBI Life is trading well above its 50 and 200 EMA on the daily chart.
Keeping the above listed points in mind, SBI Life Insurance Ltd looks good at INR 800. Finblab recommends investing in the stock in staggered manner for medium to long term.
Value Pick : July 2019
Metropolis Healthcare Limited
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