Nomura has reiterated its ‘buy’ rating on SBI Life Insurance, adjusting the target price to ₹1,800 from ₹1,835. At the current market price (CMP) of ₹1,539.05, the target price indicates a potential upside of 17%.
Key Insights:
- Market Leadership: SBI Life maintains its leadership position among private players with a 17% market share in Q3FY25.
- Cross-Selling Opportunities: Increased cross-selling opportunities are expected, leveraging SBI’s vast customer base and investments in its agency business.
- Growth Projections: Annualized premium equivalent (APE) and value of new business (VNB) are projected to grow at a 14% and 10% CAGR, respectively, over FY24-27.
- Strategic Investments: Nomura highlights the insurer’s focus on expanding its distribution channels and product mix to sustain long-term growth.
SBI Life Insurance continues to capitalize on its strong market presence and cross-selling opportunities. Nomura’s outlook underscores the company’s potential for steady growth and its ability to maintain its competitive edge in the private insurance sector.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult their financial advisor before making any investment decisions.
