Total APE grew a strong 41.7% YoY, ahead of pvt. industry growth of 21.9%. Growth was strong in both group and individual business at +100.0/36.9% YoY. Protection APE at Rs 2.1bn, ~3.5x YoY was driven by 5.5x increase in Ind. APE. Total protection share now stands at 11.2% (+~670 bps YoY). Management has guided for ~15% share for FY20E. APE based product mix for UL/PAR/NPAR/Gp./Pr. was 67/14/3/5/11% vs. 71/19/0/3/7% for FY19. NPAR savings grew 5x (on a low base, APE basis), while PAR sales declined 18.2% YoY. Management believes NPAR share can increase to low double digit share in FY20E from ~3% currently. Despite market volatility ULIP sales have not been impacted; management plans to reduce ULIP share.
OutlookAfter a strong FY19, SBILIFE continues to deliver strong performance with NBP growth of 52.7% and VNBM of 19.9% (+10bps over FY19). SBILIFE is our top BUY with a TP of Rs 914 (Jun-20 EV + 22.1x FY21E VNB).
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