CLSA has maintained an Outperform rating on SBI Life Insurance, assigning a target price of ₹2,180, which implies an upside of nearly 20% from the current market price of ₹1,817.00.
The brokerage highlighted that SBI Life delivered a strong performance in Q1FY26, marked by a robust Value of New Business (VNB) margin of 27.4%, an improvement of 60 basis points year-on-year. The margin expansion was primarily driven by a favourable product mix, particularly a shift away from Unit-Linked Insurance Plans (ULIPs) toward higher-margin protection and non-par products.
CLSA noted that while Annualized Premium Equivalent (APE) growth for the quarter stood at 9% YoY, it was partially dragged down by a flat performance in the agency channel. Despite this, management remains confident of achieving mid-teens APE growth for FY26, underpinned by channel diversification and better productivity.
SBI Life continues to benefit from its strong distribution footprint, robust parentage, and improved product profitability, CLSA added.
Disclaimer: The views expressed in this article are those of the brokerage firm (CLSA) and do not constitute investment advice. Investors are advised to consult a certified financial advisor before making any investment decisions.
