Views on SBI Life Insurance Co. Ltd. H1FY25 Results by Manish Chowdhury, Head of Research, Stoxbox
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Below the Views on SBI Life Insurance Co. Ltd. H1FY25 Results by Manish Chowdhury, Head of Research, Stoxbox
- Gross Written Premium (GWP) stood at Rs. 35,990 crores, up 7% YoY, mainly due to 11% growth in New Business Regular Premium (RP) and 16% growth in Renewal Premium (RP) in H1FY25. While Annualized Premium Equivalent (APE) stood at Rs. 9,030 crores, up 9% YoY.
- Assets under Management stood at Rs. 4,38,950 crores in H1FY25 compared to Rs. 3,45,150 crores in H1FY24, a growth of 27% YoY.
- Value of New Business (VoNB) stood at Rs. 2,420 crores in H1FY25, up 2% YoY. New Business Margin (VoNB Margin) at 26.8%.
- Profit after Tax rose to Rs. 1,050 Crores H1FY25, up 38% YoY.
- The Company has maintained its leadership position in Individual Rated Premium of Rs. 8,100 crores with 22.7% private market share in H1FY25.
- Strong growth in 25th month and 61st month persistency (based on premium considering Regular Premium/ Limited Premium payment under individual category) in H1FY 25 by 116 bps and 438 bps respectively due to our focus on improving the quality of business and customer retention.
- Robust solvency ratio of 2.04 as on September 30, 2024 as against the regulatory requirement of 1.50 indicating strong financial position of the Company.
View
SBI Life has delivered a strong performance across key operating metrics, with significant increases in new business and Profit After Tax. Assets Under Management also showed substantial growth through September 2024. However, Net Premium Income and Annualized Premium Equivalent experienced only marginal growth during this period. With new policy surrender guidelines coming into effect from October 1st, we anticipate an additional contraction in VoNB margins over the coming quarters Additionally, VoNB margins improved slightly. We will closely monitor the management's strategy on its strategic approach, particularly regarding the intensifying competition in the sector. A key monitorable going forward would be the sustenance of VNB margin
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