SBI Life Insurance - Q4FY22 First Cut - ICICI Direct

(CMP - Rs. 1116, MCap - Rs. 111696 crore)

In line performance on topline, curb on opex aids PAT ahead of estimates.

Q4FY22 Earnings Summary

- Premium growth for Q4FY22 came in at 12.1% YoY to Rs. 17434 crore and was in line with our estimates. First year premium was up 5.3% YoY while renewal and single premium were up by 14.6% and 11.2% YoY respectively. Individual new business reported strong 87% YoY growth at Rs. 8170 crore while rated premium in individual segment was up 42.6% YoY to Rs. 5190 crore. Protection new business on full year basis jumped 24% YoY to Rs. 3050 crore and this now forms 12% of total NBP

- Private market share based on individual rated premium was up 80 bps YoY to 23.4% as on March 2022.

- As a result of healthy growth in protection and annuity business, VNB Margins for FY22 were up by 270 bps YoY to 25.9%

- AUM grew at a healthy pace of 21% YoY to Rs. 267410 crores. Shareholders and policyholders (excluding linked liabilities) assets witnessed healthy growth at ~17% and ~19% YoY, respectively. Assets held in lieu of linked products rose ~23% YoY. Investment income declined 33% YoY to Rs. 2999 crore, while it was up sequentially by 24%

- Commission ratio increased ~20 bps QoQ and YoY both, to 3.7% while Opex ratio remained steady at 5.1% on a sequential basis while it was up 30 bps YoY. Consequently, total cost ratio was up by 10 bps and 50 bps YoY QoQ to 8.8%

- Premium growth remained in line, while shortfall in other income was off-set by lesser benefits paid as well as decline in actuarial liability. As a result net profit for the quarter was up 26% YoY to Rs. 672 crore and was ahead of our estimates. Embedded value increased by 9% YoY to Rs. 39630 crore

- Persistency improved as 13th month persistency ratio was up from 83.8% to 85.18% QoQ, while solvency ratio remained steady at healthy level of 2.05x

We would be shortly coming out with a detailed report.

Shares of SBI Life Insurance Company Limited was last trading in BSE at Rs. 1116.55 as compared to the previous close of Rs. 1073.75. The total number of shares traded during the day was 43954 in over 2609 trades.

The stock hit an intraday high of Rs. 1125.60 and intraday low of 1066.70. The net turnover during the day was Rs. 48519560.00.

Source : Equity Bulls

Keywords

SBILifeInsuranceCompany INE123W01016 Q4FY22Result FirstCut ICICIDirect