Broker’s call: SBI LIfe (Buy)

Target: ₹2,048

CMP: ₹1,771.10

In Q4-FY25, SBI Life Insurance’s net premium income declined 5 per cent y-o-y to ₹23,861 crore, driven by a substantial 42.1 per cent reduction in single premium income to ₹4,463 crore.

In FY25, new business premium (NBP) stood at ₹35,580 crore, with a private market share of 20.8 per cent. Individual NBP reached ₹26,360 crore, reflecting an increase of 11 per cent y-o-y and a private market share of 25.3 per cent driven by growing demand for individual life insurance products.

In FY25, gross written premium came in at ₹84,980 crore, up 4 per cent y-o-y, driven by consistency in policy renewals and moderate growth in both new and existing business. In FY25, VoNB rose 7.2 per cent to ₹5,950 crore, with VoNBV margin at 27.8 per cent (vs 28.1 per cent in FY24), driven by volume growth, though partially offset by a slight shift in the product mix towards lower-margin offerings.

Profit after tax increased 0.3 per cent to ₹814 crore in Q4FY25, driven by operational efficiencies.

The company remains strategically focused on long-term growth through strengthening its agency and bancassurance channels, improving the product mix with increased emphasis on non-ULIP and protection products, advancing digital capabilities, and expanding its presence in underserved regions. Therefore, we maintain our BUY rating on the stock, based on 2x FY27E EV, with a revised target price of ₹2,048.

Published on May 19, 2025