sbi life insurance: SBI Life Insurance Q4 Preview: Profit likely to drop 33%; VNB margin to be flat QoQ


NEW DELHI: is likely to see a drop in the net profits year-on-year (YoY) while new business premium growth is likely to be flat, according to analysts tracking the company’s financials. The company will come out with its earnings on Thursday.

Axis Securities, in a note, said it expects the company to report a nearly 33 per cent fall in net profits for the March quarter. This is despite the net premium earned for the quarter will likely rise about 9 per cent.

The broker said the insurer’s new business premiums to remain flattish QoQ given a higher base in Q3FY22. Though it is likely to see improvement in VNB (value of new business) margin that will be helped by changing portfolio mix.

It said the company’s cost metrics remain the best in the industry. had reported standalone net profit growth for the quarter ended December at 56.34 per cent. The company said its net premium income had risen 30.39 per cent YoY.

“We pencil in new business growth assumptions based on trends observed till February 2022, when SBIL had displayed NBP/APE de-growth of -31 per cent/-4.1 per cent for 2M4QFY22 (January and February 2022) over 2M3QFY22 (October and November 2021),” said YES Securities.

“We pencil in a marginal APE margin expansion of 10 bps QoQ based on expected business mix changes.”


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