Preview: India's SBI Life Insurance rises ahead of Q1 results

Sbi Life Insurance

24/07/2024 06:37

** Shares of SBI Life Insurance  SBIL.NS  gain 3% to 1,645
rupees ahead of Q1 results later in the day 
    ** Antique Stock Broking sees insurance sector's annualized
premium equivalent (APE) growth to come above estimates in Q1,
expects a 18%-20% growth in APE for SBI Life 
    ** Life insurers are seeing a rising share of low margin
market-linked policies (ULIPs) in a booming stock market
resulting in shrinking of their value for new business (VNB)
margins, analysts said 
    ** Q1 growth likely fueled by ULIPs, cos are making
concerted efforts to cushion VNB margins by increasing term
policies and higher coverage on savings policies - Kotak
    ** Brokerage sees 21% y/y growth in APE, 80 bps compression
in margins for SBIL 
    ** Peers HDFC Life  HDFL.NS , ICICI Prudential Life
 ICIR.NS  reported drop in VNB margins in Q1 
    ** Analysts' avg rating on SBIL is "Buy", in line with
ratings on HDFL and ICIR - LSEG data 
    ** Including session's gains, SBIL up ~15% YTD vs ~13% rise
in Nifty 50 index  .NSEI  

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))