Anand Rathi

SBI Life (Buy)

Target: ₹1,030

CMP: ₹858.35

SBI Life Insurance Company Ltd is one of the leading private life insurance company in India and has strengthened its leadership position in the last 20 years. It provides a comprehensive range of savings and protection products to individual and group customers across traditional and unit-linked plans.

The company has a market share of 7.2 per cent in total new business premium (NBP) during H1-FY21 V/s 6.2 per cent in H1-FY20 and 24.5 per cent market share in private sector NBP during H1-FY21 V/s 21.8 per cent in H1-FY20. The company’s gross premium grew by 22 per cent in H1-FY21 V/s H1 FY20 to ₹20,730 crore.

The Company has a balanced product mix, with the increasing awareness for pure protection products, share of protection in new business premium has enlarged over the years, from 11.9 per cent in FY19 to 12.5 per cent in FY20 increase in share of non-par business from 34.2 per cent in FY19 to 44.3 per cent in FY20.

The company has a healthy solvency ratio of 2.45 against regulatory mandate of 1.50, low surrender ratio of 2.7 per cent in H1-FY21 and improving persistency ratio of 85.9 per cent in the 13th month.

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