Motilal Oswal 's research report on SBI Life Insurance
SBILIFE is India’s largest private life insurer with an Individual WRP market share of 13.3% in FY20. It offers a range of Savings/Protection products and has a distinct competitive advantage in distribution due to its strong parentage. SBILIFE has a wide-spread network of 937 offices across the country with 130,418 productive agents and manages total AUM of INR1.6t as at Mar’20.
Outlook
SBILIFE is in a sweet spot given its strong distribution network, cost leadership and access to its parent SBI’s large customer base. Overall, we expect operating ROEV to normalize toward 18% levels with Embedded Value (EV) reflecting 16% CAGR over FY20-23E. Thus, we value the company at INR1,000/share based on 2.8x FY22E EV. We initiate coverage on SBILIFE with a Buy rating.
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