HDFC Securities: SBI Life’s Q1 Reports In-Line Performance

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Report.Over SBI Life Insurance Company’s FY21E we expect Covid-19 and changes in personal taxation to cause significant disruption to insurance sales (FY21E annual premium equivalent (APE) -13.1% YoY). We however take a longer term view on the business and appreciate the strong distribution footprint of its parent State Bank of India (over 24,000 branches), improving protection share (Q1 FY21: 12.6%, over 137 basis points YoY), lowest operating cost ratios (Q1 FY21: 10.1%).We expect SBI Life to deliver healthy FY20-23E value of new business (VNB) compound annual growth rate (CAGR) of 6.6% and return on embedded value (RoEV)s of approximately 13.4-15.4% over FY21-23E. We retain our Buy rating on SBI Life with an unchanged target price of Rs 975 (March 21E EV+ 28.9 times March-22E VNB). The stock is currently trading at FY21/22E P/EV of 2.8/2.5 times and P/VNB of 31.2/25.1 times. Lower growth, renewals, and protection share are key risks..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: SBI Life’s Q1 Reports In-Line Performance

HDFC Securities: SBI Life’s Q1 Reports In-Line Performance

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