SBI Life Insurance Company Ltd presents a compelling opportunity for investors in the dynamic Indian life insurance sector. Established as a strategic partnership between the trusted State Bank of India (SBI) and renowned French financial institution BNP Paribas Card if, the company is dedicated to the business of life insurance and annuity. With a solid foundation and the backing of these industry giants, SBI Life Insurance is well-positioned to capitalize on the growing demand for life insurance services in India. As a leader in the market, it offers a secure and profitable avenue for investors looking to participate in the nation’s financial growth and protection needs.
In this article, readers will find a comprehensive overview of the company’s history, financial performance, market position, growth strategies, and the myriad opportunities it offers for potential investors. Whether one is interested in the company’s financials, its strategies for expansion, or its role in the evolving insurance landscape, this article will be a guide to understanding the full scope of SBI Life Insurance.
SBI Life Insurance: From Inception to Market Leadership
SBI Life Insurance, a significant player in the Indian life insurance sector, was incorporated as a public limited company in Mumbai on October 11, 2000. It received the Certificate of Commencement of Business from the RoC on November 20, 2000, and officially registered with the Insurance Regulatory and Development Authority of India (IRDAI) to engage in the business of life insurance on March 29, 2001. This well-established company is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. Led by Mr. Amit Jhigran as the MD & CEO, SBI Life Insurance has consistently grown its market share, boasting around 9% of the life insurance industry in India as of 9MFY22, a substantial increase from its 6.4% market share in FY20.
With a market capitalization of ₹ 1,50,630 crore, SBI Life Insurance stands as a leading and dynamic force in the Indian life insurance landscape.
Recent News about SBI Life Insurance Company
SBI Life Insurance Company Ltd continues its winning streak, registering gains for the third consecutive session. As of 12:49 IST on the NSE, the stock is up by 2.19% at Rs 1517.8, showcasing robust performance amidst market volatility. Over the past year, SBI Life Insurance has seen a remarkable 37.2% increase in its stock value, surpassing the growth of both the NIFTY and the Nifty Financial Services index. Despite a slight decline in the last month, the stock remains resilient. Today’s trading volume stands at 4.1 lakh shares, reflecting sustained investor interest, while the April futures contract is also on an upward trajectory, up 1.98% at Rs 1519.55. With a Price-to-Earnings (PE) ratio of 79.96 based on TTM earnings ending December 23, investor confidence in SBI Life Insurance remains high, underlining positive sentiment towards its future prospects.
SBI Life Q3 FY24 Financial Highlights
- Net Profit: SBI Life Insurance Company reported a net profit of ₹322 crore in Q3FY24, representing a 6% YoY increase from ₹304 crore in the same quarter of the previous year.
- Net Premium Income: The net premium income for the third quarter increased by 16% YoY to ₹22,316 crore.
- Total APE (Annualised Premium Equivalent): The total APE rose by 13% to ₹6,130 crore in Q3 FY24 compared to ₹5,430 crore in the same quarter of the previous financial year.
- Value of New Business (VNB): The VNB increased by 11.3% to ₹1,680 crore in Q3 FY24, while the VNB margin contracted to 24.4% from the previous year’s margin of 27.8%.
- 9 Months Performance (FY24): In the nine months of FY24, SBI Life’s net profit rose by 15% YoY to ₹1,080 crore. Gross Written Premium grew by 19% to ₹56,190 crore, and assets under management rose by 24% to ₹3.7 lakh crore.
- Individual New Business Premium: The growth in individual new business premium rose by 17% to ₹17,760 crore in the nine months of fiscal 2024.
- New Business Premium (NBP): NBP increased by 21% to ₹26,000 crore in the nine months ended December, aided by growth in individual annuity business by 35%.
- APE in 9 months: Annualized Premium Equivalent (APE) in the nine months stood at ₹14,390 crore, up 17% YoY.
- VNB Margin in 9-Month Period: The VNB margin came in at 28.1% in the nine months, down from 29.6% in the same period of the previous fiscal year.
- Share Performance: After the results, shares of SBI Life were trading 2.7% lower at ₹1,372.35.
Below are the trading platforms that you can use to purchase SBI Life shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| April 2024 | 1,510.30 | 1,313.30 |
| May 2024 | 1,487.98 | 1,293.90 |
| June 2024 | 1,541.55 | 1,340.48 |
| July 2024 | 1,526.13 | 1,327.07 |
| August 2024 | 1,587.18 | 1,380.15 |
| September 2024 | 1,650.66 | 1,435.36 |
| October 2024 | 1,618.30 | 1,407.22 |
| November 2024 | 1,683.03 | 1,463.50 |
| December 2024 | 1,699.86 | 1,478.14 |
In 2024, SBI Life Insurance is expected to experience fluctuations in its stock prices. In April, the maximum price is projected to reach 1,510.30, while the minimum price is anticipated to be around 1,313.30. By December, the stock is forecasted to see a peak with the maximum price estimated at 1,699.86 and a minimum of 1,478.14.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,739.74 | 1,338.26 |
| February 2025 | 1,784.35 | 1,372.58 |
| March 2025 | 1,853.94 | 1,426.11 |
| April 2025 | 1,817.59 | 1,398.14 |
| May 2025 | 1,764.65 | 1,357.42 |
| June 2025 | 1,844.06 | 1,418.51 |
| July 2025 | 1,807.90 | 1,390.69 |
| August 2025 | 1,863.81 | 1,433.70 |
| September 2025 | 1,929.05 | 1,483.88 |
| October 2025 | 1,979.20 | 1,522.46 |
| November 2025 | 2,028.68 | 1,560.53 |
| December 2025 | 2,079.40 | 1,599.54 |
SBI Life’s share price targets for 2025 indicate a potential upward trend, with a maximum projected price of ₹2,079.40 in December and a minimum of ₹1,338.26 in January. These forecasts suggest optimism and growth potential for investors in the coming year, aligning with the company’s performance and market expectations.
| When | Maximum Price | Minimum Price |
| January 2026 | 2,141.78 | 1,647.52 |
| February 2026 | 2,196.70 | 1,689.77 |
| March 2026 | 2,282.37 | 1,755.67 |
| April 2026 | 2,237.62 | 1,721.25 |
| May 2026 | 2,172.45 | 1,671.11 |
| June 2026 | 2,270.21 | 1,746.31 |
| July 2026 | 2,225.69 | 1,712.07 |
| August 2026 | 2,294.53 | 1,765.02 |
| September 2026 | 2,374.84 | 1,826.80 |
| October 2026 | 2,436.58 | 1,874.29 |
| November 2026 | 2,497.50 | 1,921.15 |
| December 2026 | 2,559.93 | 1,969.18 |
SBI Life’s share price targets for 2026 project an optimistic outlook, with the maximum expected price reaching ₹2,559.93 in December and a minimum of ₹1,647.52 in January. These forecasts suggest sustained growth potential, reflecting positive market sentiment and confidence in the company’s performance.
| When | Maximum Price | Minimum Price |
| January 2027 | 2,611.13 | 2,008.56 |
| February 2027 | 2,678.08 | 2,060.06 |
| March 2027 | 2,782.53 | 2,140.41 |
| April 2027 | 2,727.97 | 2,098.44 |
| May 2027 | 2,648.51 | 2,037.32 |
| June 2027 | 2,767.70 | 2,129.00 |
| July 2027 | 2,713.43 | 2,087.25 |
| August 2027 | 2,797.35 | 2,151.81 |
| September 2027 | 2,895.26 | 2,227.12 |
| October 2027 | 2,970.53 | 2,285.03 |
| November 2027 | 3,044.80 | 2,342.15 |
| December 2027 | 3,120.92 | 2,400.71 |
| When | Maximum Price | Minimum Price |
| January 2028 | 3,183.34 | 2,448.72 |
| February 2028 | 3,264.96 | 2,511.51 |
| March 2028 | 3,392.29 | 2,609.46 |
| April 2028 | 3,325.78 | 2,558.29 |
| May 2028 | 3,228.91 | 2,483.78 |
| June 2028 | 3,374.21 | 2,595.55 |
| July 2028 | 3,308.05 | 2,544.65 |
| August 2028 | 3,410.36 | 2,623.35 |
| September 2028 | 3,529.72 | 2,715.17 |
| October 2028 | 3,621.50 | 2,785.77 |
| November 2028 | 3,712.03 | 2,855.41 |
| December 2028 | 3,804.83 | 2,926.80 |
| When | Maximum Price | Minimum Price |
| January 2029 | 3,880.93 | 2,985.33 |
| February 2029 | 3,980.44 | 3,061.88 |
| March 2029 | 4,135.68 | 3,181.29 |
| April 2029 | 4,054.59 | 3,118.91 |
| May 2029 | 3,936.49 | 3,028.07 |
| June 2029 | 4,113.63 | 3,164.33 |
| July 2029 | 4,032.98 | 3,102.29 |
| August 2029 | 4,157.71 | 3,198.24 |
| September 2029 | 4,303.23 | 3,310.17 |
| October 2029 | 4,415.11 | 3,396.24 |
| November 2029 | 4,525.49 | 3,481.14 |
| December 2029 | 4,638.63 | 3,568.17 |
| When | Maximum Price | Minimum Price |
| January 2030 | 4,731.40 | 3,639.54 |
| February 2030 | 4,852.72 | 3,732.86 |
| March 2030 | 5,041.97 | 3,878.44 |
| April 2030 | 4,943.11 | 3,802.39 |
| May 2030 | 4,799.14 | 3,691.64 |
| June 2030 | 5,015.10 | 3,857.77 |
| July 2030 | 4,916.76 | 3,782.12 |
| August 2030 | 5,068.83 | 3,899.10 |
| September 2030 | 5,246.23 | 4,035.57 |
| October 2030 | 5,382.64 | 4,140.49 |
| November 2030 | 5,517.20 | 4,244.00 |
| December 2030 | 5,655.13 | 4,350.10 |
In 2030, SBI Life Insurance is expected to experience varying stock prices throughout the year. In January, the maximum price is forecasted to reach 4,731.40, while the minimum price is anticipated to be around 3,639.54. As the year progresses, fluctuations continue, with prices fluctuating between highs and lows. By December, the stock is expected to reach its peak, with the maximum price estimated at 5,655.13, while the minimum is projected to be 4,350.10.
SBI Life Insurance Financial Condition: Last 5 Years
| Financials | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 44,604 | 43,798 | 81,913 | 82,983 | 80,636 |
| Expenses (Rs. Crores) | 43,130 | 42,447 | 81,040 | 82,254 | 80,420 |
| Operating Profit (Rs. Crores) | 1,474 | 1,351 | 872 | 730 | 216 |
| Other Income (Rs. Crores) | 266 | 529 | 867 | 1,032 | 1,758 |
| Interest (Rs. Crores) | 8 | 0 | 0 | 0 | 0 |
| Depreciation (Rs. Crores) | 92 | 89 | 99 | 75 | 68 |
| Profit before Tax (Rs. Crores) | 1,642 | 1,790 | 1,640 | 1,687 | 2,025 |
| Tax % | 19% | 21% | 11% | 11% | 10% |
| Net Profit (Rs. Crores) | 1,327 | 1,422 | 1,456 | 1,506 | 1,721 |
| EPS (Rs) | 13.27 | 14.22 | 14.56 | 15.05 | 17.19 |
| Dividend Payout % | 15% | 0% | 17% | 13% | 15% |
Over the past five years, SBI Life Insurance has experienced notable fluctuations in its financial condition. Starting in 2019, the company reported sales of ₹44,604 crores, and this figure remained relatively stable in the subsequent year. However, in 2021, the company witnessed a significant surge in sales, reaching ₹81,913 crores, reflecting a substantial growth trend. This growth was accompanied by a substantial increase in expenses, resulting in a noteworthy shift in operating profit. In 2022, the operating profit dropped to ₹730 crores, signaling a challenge for the company.
Nonetheless, SBI Life Insurance made a commendable recovery in 2023, with an operating profit of ₹216 crores. The company’s financial resilience is further underscored by the consistent growth in other income, which increased from ₹266 crores in 2019 to ₹1,758 crores in 2023. The company’s ability to manage expenses and maintain profitability is evident through its net profit figures, which steadily climbed from ₹1,327 crores in 2019 to ₹1,721 crores in 2023. SBI Life Insurance’s earnings per share (EPS) also exhibited a positive trajectory, ending at ₹17.19 in 2023. Throughout these years, the company maintained a reasonable dividend payout percentage, showing its commitment to shareholder returns.
In summary, SBI Life Insurance’s financial condition has demonstrated resilience and growth, albeit with fluctuations, in the face of changing market dynamics over the past five years.
FAQs
What is the current market capitalization of SBI Life Insurance?
SBI Life Insurance’s market capitalization stands at ₹ 1,50,630 crore.
As of April 11, 2024, the SBI Life Insurance share price is at ₹1,503.
The share price target for SBI Life in January 2025 is estimated to range from ₹1,338.26 to ₹2,079.40, with fluctuations in the subsequent months.
SBI Life’s share price is projected to range from ₹1,647.52 to ₹5,655.13 in the years from 2026 to 2030.
What is the current Price-to-Earnings (PE) ratio of SBI Life Insurance?
The current Price-to-Earnings (PE) ratio for SBI Life Insurance is 74.3, indicating the market’s valuation of the company’s stock relative to its earnings.
How did SBI Life’s operating profit change over the past five years?
SBI Life’s operating profit fluctuated, with a peak of ₹1,474 crores in 2019 and a low of ₹216 crores in 2023.
ALSO READ
- BAJAJ FINSERV SHARE PRICE TARGET 2024, 2025 TO 2030
- Tata Chemicals Share Price Target 2024, 2025 To 2030
- CMS Info Systems Share Price Target 2024, 2025 to 2030
Conclusion: Investment Insights for SBI Life’s Promising Future
In conclusion, SBI Life Insurance emerges as a compelling investment opportunity within India’s dynamic life insurance sector. Formed through a strategic partnership between the reputable State Bank of India and BNP Paribas Cardif, the company is strategically positioned to capitalize on the expanding demand for life insurance services.
With a sturdy market share growth, robust financial performance evidenced by a 6% YoY increase in Q3FY24 net profit, and a resilient approach to market dynamics, SBI Life proves its strategic prowess. The projected share price targets for 2024 to 2030 further underscore the company’s optimistic trajectory. As a cornerstone in India’s financial landscape, SBI Life Insurance offers investors a secure and profitable avenue for sustained growth in the ever-evolving insurance sector.
What did we learn?
- 1 SBI Life Insurance: From Inception to Market Leadership
- 2 Recent News about SBI Life Insurance Company
- 3 SBI Life Q3 FY24 Financial Highlights
- 4 How to Purchase SBI Life Shares?
- 5 SBI Life Share Price Target: 2024 To 2030
- 6 SBI Life Insurance Financial Condition: Last 5 Years
- 7 FAQs
- 7.1 What is the current market capitalization of SBI Life Insurance?
- 7.2 What is the current share price target for SBI Life Insurance?
- 7.3 What is the share price target for SBI Life Insurance in 2025?
- 7.4 What is the share price target for SBI Life Insurance in 2030?
- 7.5 How did SBI Life’s operating profit change over the past five years?
- 7.6 ALSO READ
- 8 Conclusion: Investment Insights for SBI Life’s Promising Future
