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SBI Life Q3 Review - Current Product Mix Leaves Room For Margin Expansion: Nirmal Bang

SBI Life Q3 Review - Current Product Mix Leaves Room For Margin Expansion: Nirmal Bang

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

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Nirmal Bang Report

SBI Life Insurance Company Ltd.’s total annual premium equivalent growth of 30.5% YoY in Q3 FY22 was ahead of peers. Individual savings growth was led by non-par savings, which increased by 67% YoY while unit linked insurance plan APE grew by ~28% YoY.

Individual protection growth seemed reasonable considering the high growth in Q3 FY21. While return of premium continues to dominate the individual protection segment, the management stated that it expects to get better traction in the pure term product and that it could eventually account for a higher share.

SBI Life remains optimistic about the non-par savings business, guiding for a higher share in the overall product mix by end-FY22. In the medium term, non-par savings could account for 15-18%.

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Nirmal Bang SBI Life Insurance- Q3FY22 Result Update-22 January 2022.pdf

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