SBI Life Insurance is a joint venture life insurance company between State Bank of India (SBI), the largest state-owned banking and financial services company in India, and BNP Paribas Cardif. BNP Paribas is a French multinational bank and financial services company with global headquarters in Paris. SBI has a 55.50 % stake in the company and BNP Paribas Cardif owns a 22% stake. Other investors are Value Line Pte. Ltd. and MacRitchie Investments Pte. Ltd., holding a 1.95% stake each while the remaining 12% is free float stake with public investors. SBI Life Insurance has an authorized capital of ₹20 billion (US$280 million) and a paid up capital of ₹10 billion (US$140 million).
In 2007, CRISIL Limited, a subsidiary of global rating agency Standard & Poor’s, gave the company a AAA/Stable/P1+ rating
SBI Life share Asset & Liabilities
BROKERAGE VIEW ABOUT SBI Life share price
SBI Life’s NBP was slower with growth of 10% YoY led by a slower group business, while decent retail business growth of 37% YoY in NBP, APE grew by 28% YoY. On effective tax basis, SBILI is catching up toward industry players with 90bps (400bps YoY) improvement seen from FY21 to 24.1%. Margin improvement has been on good mix change mainly from continued protection (best growth amongst listed players – 62% YoY in NBP & 86% in APE). COVID claims & reserving of Rs4.4bn (incl. Rs1.8bn of Q4FY22) is near to industry trends with benefits reaped from mortality changes done in FY21. SBILI has underperformed peers with valuations lowest in the sector and we believe gradual margin improvement, better cost metrics and growth prospects (strong distribution) will help catch up on valuations.
SBI life share Outlook
Retain BUY with revised TP of Rs1,250 (from Rs1,150) based on 2.5x Sep-23 (rolled over from Mar-23).
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