Result Analysis:  SBI Life Insurance Company Ltd. Result Update Q3FY22


Particulars (In Rs. Cr.) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY%
First Year Premium 4074 3277 24.3% 9088 6678 36.1%
Renewal Premium 9653 8436 14.4% 22460 20170 11.4%
Single Premium 4429 2162 104.8% 9703 7759 25.1%
New Business Premium 8503 5439 56.3% 18791 14437 30.2%
Total APE 4570 3500 30.6% 10170 7480 36.0%
Net Premium Income 18025 13766 30.9% 40999 34213 19.8%
Profit after Tax 364 233 56.3% 834 923 -9.7%
Value of New Business (Rs. Bn) 1170 760 53.9% 2590 1560 66.0%
Ratios Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY%
Expense Ratio 7.72 8.38 -66 8.62 8.51 11
VNB margin 25.6 21.7 390 25.5 20.8 470
Solvency Ratio 209 234 209 234
13th month 79.21 80.29 -108 83.87 83.38 49
25th Month 73.74 71.73 201 76.43 75.89 54
37th Month 68.18 68.64 -46 71.87 70.80 107
49th Month 66.61 62.96 365 68.30 63.82 448
61th Month 45.28 45.18 10 48.68 52.49 -381

Result Highlights: 

  • SBI Life registered strong 31% YoY Net Premium growth in Q3FY22 ahead of the street Estimates.

  • New Business Premium (NBP) has grown by 30% in 9MFY22 and 56% YoY in Q3FY22 driven by strong growth in regular premium business.

  • Profit after Tax grew by 56% YoY to Rs. 364 Crore in Q3FY22.

  • The Company has achieved private market leadership in Individual Rated Premium of Rs 9070 Crore with 24.8% private market share in 9M FY 22.

  • NBP channel mix for 9MFY22 is bancassurance channel 51%, agency channel 17% & other channels 32%

  • Value of New Business (VoNB) increased by 66% in 9M FY22 and 54% YoY in Q3FY22.

  • VoNB margin increased by 470 bps from 20.8% in 9MFY21 to 25.5% in 9MFY22.

  • Total APE increased by 36% in 9M FY22 and 30.6% YoY in Q3FY22.

  • Strong solvency ratio as on December 31, 2021 of 2.09 as against the regulatory requirement of 1.50.

  • Improvement in 13th month persistency by 49 bps to 83.87% for 9M FY 22 vs. 83.38% in 9M FY 21 due to focus on improving the quality of business and customer retention.

  • Fall in investment income has been offset by a sharp spike in premium incomes and lower actuarial provisioning estimates.


SBI Life insurance is the leading private Insurance company in Private life Insurance space. The company reported strong premium growth with improved VNB Margins during 9MFY22. For FY22, the management of the SBI Life expects the share of non-par at 12-13%. Over the medium-to-long term, the non-par share may increase to 15-18%. The shift in product mix towards higher margin products such as non-par would help in improvement of VNB margin of the company. Company’s three growth levers continue to remain in place with parent SBI’s massive distribution network of more than 24000 branches), healthy share of protection; and lowest operating expenses ratio amongst peers (9MFY22: 8.6%). We have a positive outlook for the company hence, investors can buy the stock at CMP of Rs.1239 for target price of Rs.1500. Time frame should be 9-12months.

Source: BSE, Bloomberg Quint, EW Research

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