SBILIFE has reported strong traction in new business growth, with Individual WRP growth of 52%/67% over Jul'21/Aug'21. In FY22 YTD, it has delivered Individual WRP growth of 48% YoY, while two-year CAGR stands healthy at 20%.

Motilal Oswal Institutional Equities reiterates 'Buy' on SBI Life Insurance Company (SBILIFE) with a target price of Rs 1,400 per share.

The company's management indicates pick up in business momentum, with growth bouncing back strongly across all segments. The management is aiming at healthy double-digit growth over FY22E (20-25%), which would be among the best in the past few years. "We estimate 20% CAGR in APE growth over FY21-24E. SBILIFE is among our preferred picks in the Life Insurance space. We reiterate our BUY rating with a TP of Rs 1,400/share (2.6x 1HFY24E EV)," it added.

Agency channel has shown a strong bounce back and is contributing well to business growth. Strong momentum in high margin segments such as Annuity and Credit Life would aid further improvement in VNB margin, the broking firm said.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.