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Motilal Oswal: SBI Life - Steadfast Lineage, Unmatched Distribution, Steady Return Ratios  

Motilal Oswal: SBI Life - Steadfast Lineage, Unmatched Distribution, Steady Return Ratios

A person filling SBI Life Insurance form. (Source: BloombergQuint)
A person filling SBI Life Insurance form. (Source: BloombergQuint)

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.

Motilal Oswal Report

SBI Life Insurance Company Ltd. is India’s largest private life insurer with an Individual weighted retail premium (WRP) market share of 13.3% in FY20.

Over FY16-20, it posted strong new business WRP compound annual growth rate of approximately 21%, led by strong distribution network and healthy execution.

The company’s strong parentage and wide branch network provides it with a distinct distribution advantage over its peers, helping it to maintain low cost ratios and capitalise on the large clientele of State Bank of India (449 million), thus, providing it with a long-term structural growth story.

SBI Life has reported an improvement in persistency trend over the years, led by focus on garnering a better quality business and need-based selling. 13th month persistency improved to 86%.

It maintains the highest 61st month persistency at 60% (versus peers), and thus, is supported by healthy growth in renewal premium.

Click on the attachment to read the full report:

Motilal Oswal SBI Life Initiating Coverage.pdf

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