SBI Life Q2 Results Review- Value Of New Business Margins Contract Due To Shift In Product Mix: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.SBI Life Insurance Company Ltd. reported a weak performance in Q2 FY25. Annual premium equivalent grew 3% YoY to Rs 53.9 billion (11% miss). For H1 FY25, it grew 9% YoY to Rs 90.3 billion.Absolute VNB declined 3% YoY to Rs 14.5 billion (14% miss). For H1 FY25, it grew 3% YoY to Rs 24.2 billion. The management expects VNB growth to remain in the range 12-15% in FY25. VNB margins came in at 26.9% vs. 28.5% in Q2 FY24 and 26.8% in Q1 FY25 (estimate 28%). However, the management expects margins to remain in the range of 26- 27% in FY25 on the back of new product launches in the protection segment and a minimal impact of surrender charges.In Q2 FY25, shareholder PAT grew 39% YoY to Rs 5.3 billion (in line). For H1 FY25, it grew 38% YoY to Rs 10.5 billion.We expect SBI Life to deliver an 18% CAGR each in APE and VNB over FY24- 27E, while return on embedded value is likely to remain at ~20% over FY27. Due to strong growth in ULIPs and a blip in protection sales, we have cut our APE/VNB estimates for FY25. We reiterate our Buy rating on the stock with a target price of Rs 2,100 (premised on 2.3 times Sept’26E embedded value)..Click on the attachment to read the full report:.SRF Q2 Results Review - Recovery Delayed As Uncertainties Persist: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Life Q2 Results Review- Value Of New Business Margins Contract Due To Shift In Product Mix: Motilal Oswal

New product launches are likely to kick-start the recovery in the protection segment, says the brokerage.

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SBI Life Q2 Results Review- Value Of New Business Margins Contract Due To Shift In Product Mix: Motilal Oswal

New product launches are likely to kick-start the recovery in the protection segment, says the brokerage.

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