SBI Life Q2 result preview: PAT likely to rise over 11%; healthy VBN growth expected

SBI Life Insurance, the life insurance company, is all set to announce its Q2FY24 results on Friday, October 27. Analysts estimate the standalone profit after tax (PAT) to increase by 11.4 per cent to Rs 420 crore as against Rs 377 crore registered in the year-ago period.

According to Zee Business Research, SBI Life is likely to report a growth in net premium earned, income earned by insurance companies less the expenses associated with the policy, for the three months by 24.9 per cent to Rs 20,596 crore as against Rs 16,477 crore a year ago.

Further, the annual premium equivalent (APE), a common measure of ascertaining business sales in the life insurance industry, is expected at Rs 5,070 crore against Rs 3,930 crore seen in the year-ago period, which implies an increase of 29 per cent.

The value of new business (VNB), which indicates the profit margin of life insurance, is likely at Rs 1,470 crore for the September quarter as against Rs 1,240 crore seen in the year-ago quarter, which is an increase of 18.5 per cent.

Zee Business analysts estimate the company's assets under management (AUM) for the second quarter at Rs 3.39 lakh crore, as against Rs 2.82 lakh crore reported a year ago. The solvency ratio is likely at 217 per cent as compared to 219 per cent YoY.

Analysts expect healthy growth in new business premiums and strong trends in the non-PAR (non-participating) segment, which does not offer any dividend payouts.

Here's how SBI Life fared in Q1

SBI Life Insurance Company reported a net profit of Rs 381.04 crore for the April-June quarter of FY24, up by 45 per cent from Rs 263 crore recorded in the year-ago period.

The net premium income of the insurer came in at Rs 13,104.09 crore, up 19 per cent from Rs 11,036.02 crore registered in the year-ago period.

SBI share price: Past performance

Since January, SBI Life shares have grown over 5 per cent in value, compared to a 6 per cent rise in the headline Nifty50 index.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.