ICICI Direct's research report on SBI Life Insurance
SBI Life Insurance reported a mixed performance wherein premium accretion was healthy but higher actuarial liability offset investment income, led to lower than expected surplus and earnings. Premium growth remained healthy at 18% YoY to Rs 13766 crore, led by higher traction in renewal (up 24% YoY) and single premium (up 16.5% YoY). New Business Premium (NBP) witnessed moderation in growth at 9.5% YoY to Rs 5439 crore, led by flattish group business. Protection business (individual + group) continued to report strong growth at Rs 710 crore in Q3FY21 vs Rs 510 crore in Q3FY20. Proportion of total protection NBP to total NBP stood at ~13% in Q3FY21. Group savings products business remained flat YoY at Rs 1030 crore.
Outlook
We maintain our target at Rs 1000 per share, valuing the stock at ~2.6x FY23E EV. Maintain Buy rating
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