SBI Life Insurance Company Ltd. is one of the leading life insurance companies in India. It is a joint venture between State Bank of India, which is India’s largest public sector bank, and the leading global insurance company BNP Paribas Cardiff. As of March 31, 2019, the company covered as many as 24 million lives.
Industry Overview
With India being the seventh-largest economy in the world and one of the nations with the highest youth population having a median age of 28 years, there is undoubtedly a rise in demand for life insurance. The demand is further propelled by the burgeoning share of the working population, swift urbanization, rising affluence and increased focus on financial inclusion. The Indian life insurance market is the tenth-largest life insurance market worldwide and the fifth largest in Asia with 4.6 trillion in total premium business. Despite this, it continues to be under-penetrated in comparison to countries like Japan, Thailand, and Korea. Moving forward, we can expect an increase in financial savings as a percentage of household savings along with an increase in the share of insurance as a percentage of financial savings to bolster growth in the life insurance space.
Financial Performance
On the standalone financial front, the company reported a growth of 5.56 percent YoY in total income from operations to 386.75 crore in Q1FY20 as against 366.39 crore in Q1FY19. The assets under management (AUMs) stood at 1,46,950 crore in Q1FY20 as compared to 1,41,020 crore in Q1FY19, marking a growth of 4.21 percent. Profit before interest, exceptional items and tax rose to 377.84 crore in Q1FY20 from 363.25 crore in Q1FY19, posting a YoY growth of 4.02 percent. Net profit for the period climbed 4.96 percent YoY to 371.90 crore in Q1FY20 from 354.31 crore in Q1FY19. EPS showcased a growth of 5.08 percent as it soared to 3.72 in Q1FY20 from 3.54 in Q1FY19. The debt-to-equity ratio came in at 77:23. However, 91 percent of its debt investments are in AAA and sovereign instruments.
This story is from the August 5, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 5, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Two to Tango: Indian IT Meets Nasdaq?
The outperformance of NASDAQ is not broad-based and is primarily led by a few companies that are dominant in new emerging technologies and are leading the wave. Indian IT companies and many other traditional IT companies will see a temporary slowdown till the time they do the catching up either organically or inorganically
It's Time To Exit From 'Those' Stocks!
Were you among the investors who sold stocks during the recent market panic, or shouldn’t you have followed the herd mentality? In the unpredictable world of stock markets, recognising the opportune moment to sell can be as crucial as identifying the right time to buy. Mandar Wagh delves into the concepts of intrinsic value and overvaluation, offering insights into strategies investors can employ when their stocks are deemed overvalued
Stress Tests: The Mandate, The Results & Insights
Now that the Securities and Exchange Board of India SEBI) has made it mandatory for fund houses to undertake stress tests for mid-cap and small-cap funds to see if redemptions can be made within a short period in the face of any financial crisis, it is important for investors to Know more about how such stress tests are conducted and what they reveal
Powering the Future: Opportunities in Green Stocks
As the world grapples with the challenges of climate change, the spotlight turns towards renewable energy stocks and their pivotal role in shaping a cleaner, greener future. Kamal Mansuriya analyses the transformative potential of renewable resources, driving both environmental stewardship and economic growth.
Leverage Like a Legend: Warren Buffett's Japan Gambit and Lessons for Investors
Imagine turning a billion dollars into twelve, all without risking a dime of your own. Sounds like financial fiction, right? But that's exactly what investing guru Warren Buffett pulled off with his audacious bet on Japan. In this special story, Vaishnavi Chauhan dissects the unconventional strategy Buffett employed to leverage borrowed money and generate sky-high returns in the Land of the Rising Sun.
The Art Of Identifying Market Winners
When it comes to choosing the right stocks, Dr. Ruzbeh Bodhanwala and Dr. Shernaz Bodhanwala, faculty at FLAME University, Pune suggest that no single metric or ratio should be used to make an investment decision. There is no substitute for thorough fundamental analysis and one should understand the companies' risk profile before investing
Civil construction company gets new order worth 534 crore from Jodhpur Vidyut Vitran Nigam
H.G. Infra Engineering Limited (HGIEL) informed that the company bagged an order worth ₹ 534 crore from Jodhpur Vidyut Vitran Nigam Ltd.
This solar power EPC company achieves the milestone of over 1,000 MW contracted orders globally
Scorpius Trackers, a leading solar tracking technology S company and a of Gensol company and a subsidiary of Gensol Engineering Ltd achievement of reaching a significant milestone of 1000 MW + in contracted orders across India, Japan, Saudi Arabia and Uganda solidifying its position as a key player in the global solar tracking industry.
Recently listed small-cap company bags two orders worth USD 60,43,800
Mukka Protein Ltd has secured purchase orders valued at USD 60,43,800, equivalent to approximately ₹ 50.39 crore from Ever Light Oil Industrial Co. Ltd Land Uni Best General Trading FZE for the fish meal supply.
How To Identify A Market Bubble
While explaining the term market bubble’, this article by Vaishnavi Chauhan elucidates how by prioritising fundamentals, maintaining a long-term perspective and resisting emotional impulses, investors can navigate market bubbles more effectively and safeguard their portfolios against unnecessary risks