State-run SBI Life Insurance Company Limited is likely to report a strong October-December quarter earnings for the financial year 2021-22 (Q3FY22). The public sector insurance company is likely to report 26-30 per cent year-on-year growth in net premium income during the quarter, according to street's estimates. 

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According to Motilal Oswal, the company may report 26 per cent YoY growth in new premium income to Rs 17,370 crore, while profit likely to surge by 30 per cent to Rs 300 crore in Q3FY22.  

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SBI Life had reported Rs 13,770 crore as new premium income and Rs 230 crore as profit during in a year ago quarter. 

The company’s VNB (value of new business) may come around 25.7 per cent and solvency ratio likely to stand 207 per cent during the third quarter, Motilal Oswal report further said. 

Similarly, SBI Life’s net interest income is seen at Rs 17,769.8 crore for the December-ended quarter, which will be around 29 per cent YoY, as per the estimates by ICICI Direct expects. 

New business premiums could see a strong pickup while margins may stay stable. Similarly, protection mix to improve as non-PAR to remain healthy, Motilal Oswal report added. 

The COVID-related claims would be a key monitorable, the brokerage firm further said. It maintains a Buy rating and expects the stock may grow by 24 per cent to Rs 1500 per share as target price.  

Even the domestic brokerage firm ICICI Direct has a buy rating for SBI Life with a target price of Rs 1,360 per share. The counter on Thursday closed 0.73 per cent lower at Rs 1,238.9 on the BSE, as compared to 1.21 per cent fall in the S&P BSE Sensex.  

The stock in the last one year has gained over 40 per cent as compared to nearly 23 per cent rise in the S&P BSE Sensex.