Buy SBI Life Insurance target of Rs 1180: ICICI Direct

ICICI Direct is bullish on SBI Life Insurance has recommended buy rating on the stock with a target price of Rs 1180 in its research report dated January 23, 2020

Broker Research

February 13, 2020 / 12:55 IST

26 Aug, 2025 12:21

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ICICI Direct's research report on SBI Life Insurance

Premium growth continued to remain robust at 33% YoY to Rs 28700 crore in 9MFY20, led by robust traction of 35% YoY in new business premium (NBP) and steady renewals at Rs 15910 crore; up 31% YoY. Within NBP, traction in individual business remained healthy at ~26% YoY in 9MFY20 to Rs 8040 crore. Protection business (individual + group) witnessed robust traction of 37% YoY to Rs 1440 crore in 9MFY20. Total protection NBP as a proportion of total NBP continued to remain steady at 11% in 9MFY20.

Outlook

Operating RoEV is seen improving at ~18.5% in FY22E. On rollover to FY22E, we revise our target price to Rs 1180 (vs. earlier Rs 1000), valuing the stock at 3.2x FY22E EV. We remain positive on SBI Life structurally being a play on growth led by distribution, brand reach and adequate product mix. We maintain BUY.

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