SBI Life Insurance is a joint venture life insurance company between State Bank of India, the largest state-owned banking and financial services company in India, and BNP Paribas Cardif. BNP Paribas is a French multinational bank and financial services company with global headquarters in Paris.
SBI life has grown as the best insurance company, yes despite PSU they are going not good but better then all. SBI Life was established in 2001 as a joint venture between SBI & BNP Paribas. Have grown from 7000 Cr revenue & 26 Cr Losses in 2009 to today around 50,000 Cr sales and 1500 Cr profits. CAGR sales growth of 15% can be seen, which is extraordinary. The majority of Insurance companies were able to have good growth. Many of You are either holding HDFC life or SBI Life since IPO during 2018.
Current Q1 revenue has grown attractive by 10% whereas Profit have fallen by 43% on the back of Covid. 1.4x growth in number of deaths in India from FY21 to Q1-FY221. 1.3x increase in number of claims reported from FY21 to Q1-FY22. Total number of COVID Claims in Q1-FY22 are 8,956. COVID-19 Claims net of reinsurance of 5700 Cr were made along with additional reserve of 440 Cr for future claims. Hence this was the year of high demand for insurance which made sales grew but cost due to claims were also high which ate the profits.
On long term We may see SBI life cross 5000 Cr Profits till 2030. 61% consistency even after 61st Month. 57% of clients are banking clients. Both HDFC & SBI Life can be added again during any fall, SBI Life can be added near 900 (Upgraded from the range of 740 to 640) and can expect multi-year rally. near term target could be 1650 for next year. SBI is the promoter of 57.5% stake while BNP holds 5.2%. 24% holding by FII and 6% MF companies holding.