SBI Life shares under pressure ahead of life insurer's Q1 results

SBI Life Q1 results: SBI Life Insurance Company shares were under pressure on Tuesday as investors awaited the life insurer's earnings announcement for the April-June period due later in the day. The stock of SBI Life Insurance — traded on the bourses with the symbol SBILIFE — declined by as much as Rs 27.7 or 2.1 per cent to Rs 1,290.5 apiece on BSE. SBI Life shares ended at Rs 1,300.5, down by Rs 17.65 on BSE.

SBI Life Q1 results: What to expect?

According to Zee Business research, SBI Life Insurance Company's net profit for the quarter ended June 2023 is estimated at Rs 300 crore, which would mean a 14.1 per cent increase compared with the year-ago period. 

The analysts estimate its value of new business (VNB) — a key measure of profitability for insurance companies — at Rs 950 crore for the three-month period, up eight per cent on a year-on-year basis.  According to the research, SBI Life's VNB margin is estimated at 30.5 per cent, up by 10 basis points compared with the year-ago period. 

How SBI Life Insurance fared in Q4

For the final quarter of the financial year 2022-23, SBI Life Insurance Company reported a standalone net profit of Rs Rs 776.9 crore, translating to an increase of 15.6 per cent compared with the corresponding period a year ago. 

Its new business premium increased 21.1 per cent on a year-on-year basis to Rs 8,080 crore for the March quarter, according to a regulatory filing.  The company's VNB margins came in at 30.1 per cent for the March quarter, as against 25.9 per cent for the year-ago period. SBI Life's value of new business grew 29.7 per cent to Rs 1,440 crore compared with the year-ago period. 

SBI Life share price history

SBI Life shares have grown more than 15 per cent in the last 12 months, in line with an 18 per cent rise in the benchmark Nifty index. 

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