Jefferies has upgraded SBI Life Insurance to a ‘buy’ rating, raising the target price to ₹1,770. The company reported a value of new business (VNB) of ₹19bn for 3QFY25, an 11% year-on-year (YoY) growth, in line with annual premium equivalent (APE) growth of 13%. Margins, however, were slightly lower at 27%.
Growth in the banca channel improved to 9% versus 3% in Q2, although the management lowered its medium-term growth prospect in this segment to 10%. Efforts are underway to ramp up the agency channel to offset the decline. Jefferies expects VNB to grow at a 12% CAGR over FY25-27 and has trimmed estimates by 2-4%.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
