SBI Life Q3 results today: Here's what to expect from the leading insurer

Leading life insurer SBI Life will report its third quarter results today and estimates suggest that the company is likely to see growth in profitability even though there is muted growth in the SBI Channel.

For instance, Motilal Oswal expects the PAT in the third quarter to grow around 56% (year-on-year) YoY, while Axis Securities sees the bottomline jumping nearly 50%.

Growth in the new business premium is expected to remain stable and single-digit VNB (Value of new business) growth is anticipated in the December quarter. Meanwhile, margins are likely to remain flattish QoQ.

Here's what to expect from SBI Life Q3:

Kotak Equities

We expect SBI Life to report muted 10% YoY APE growth in 3QFY25 (7% and 9% in October and November 2024 respectively). We expect margin to compress by 100 bps YoY and 40 bps QoQ to 26.4%, driven by increase in share of ULIPs in the product mix.

Also Read: Wipro Q3 results preview: PAT may rise 12% YoY, but CC revenue seen weakest among peers

Emkay Global

The continued sluggish growth in SBI channel is being partly offset by a very strong 25-30% growth in the agency channel. However, given that 2/3rd of individual new business comes from SBI, the retail growth is modest.

The intense competition in group fund business has led to the company reducing its business in this segment. This has resulted in the overall APE growth being lower than retail APE.

Given its lower dependency on non-linked products, the company should see better VNB margin performance. The margin performance should also be supported by the good offtake of its two new term plans.

Nuvama

Growth likely to be subdued from the SBI channel. Management commentary on distribution through the bank channel will be key to watch out for.

Axis Securities

NBP growth expected to remain stable; APE growth likely to be soft YoY. Performance on new product roll out to be keenly eyed. Cost leadership likely to continue. VNB growth to remain muted, VNB margins likely to be flat QoQ. Key monitorables: (1) Outlook on VNB Margins and 2) Comments on growth and changes in Product mix (if any).

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)