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SBI Life Insurance Company stocks: Buy SBI Life Insurance Company, target price Rs 1350: ICICI Direct

  • May 23, 2023
ICICI Direct has buy call on SBI Life Insurance Company with a target price of Rs 1350. The current market price of SBI Life Insurance Company is Rs 1136.85.

SBI Life Insurance Company, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 113806.74 Crore) operating in Financial Services sector.

SBI Life Insurance Company key Products/Revenue Segments include Premiums Earned and Other Operating Revenue for the year ending 31-Mar-2022.

Financials

For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 21310.74 Crore, down -20.57 % from last quarter Total Income of Rs 26829.77 Crore and down -1.64 % from last year same quarter Total Income of Rs 21666.15 Crore. Company has reported net profit after tax of Rs 776.85 Crore in latest quarter.

The company’s top management includes Mr.Dinesh Kumar Khara, Mr.Mahesh Kumar Sharma, Ms.Usha Sangwan, Dr.Tejendra Mohan Bhasin, Mr.Narayan K Seshadri, Mr.Deepak Amin, Mr.Shobinder Duggal, Mr.Ashwini Kumar Tewari. Company has S C Bapna & Associates as its auditors. As on 31-03-2023, the company has a total of 100 Crore shares outstanding.

Investment Rationale

SBIL’s share price has grown ~45% in the past three years. Lower proportion of high ticket business, strong distribution and diversified product mix along with lowest cost on relative basis is seen aiding business growth as well VNB margin. The stock is reasonably priced and is currently trading at 1.9xFY25E embedded value.
Promoter/FII Holdings
Promoters held 55.45 per cent stake in the company as of 31-Mar-2023, while FIIs owned 25.14 per cent, DIIs 15.09 per cent.

(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, … Read the rest

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Vietnam remains important life insurance market in Asia

  • May 21, 2023

HANOI (Xinhua): Vietnam remains a key life insurance market in Asia with nearly 14 million life insurance contracts as of the end of 2022, according to the Insurance Association of Vietnam.

The number of life insurance contracts in the country in 2022 increased by 5 per cent year on year and premiums rose by 12 per cent to over 178 trillion Vietnamese dong (US$7.6 billion), local newspaper Vietnam News reported on Wednesday (April 26), citing the association.

Of the contracts, 995,000 were through bancassurance, which accounted for 46 per cent of the premiums. Life insurance claims last year topped 44 trillion Vietnamese dongs ($1.9 billion), a 34 per cent increase, according to the association.

The life insurance market in Vietnam has 730,000 agents, according to Ngo Trung Dung, the association’s deputy general secretary.

Recently, insurance companies in Vietnam have been required to tighten the supervision of agencies and sales amid negative feedback from the public over poor transparency of insurance products.

The country’s Insurance Supervisory Authority demanded insurance agencies immediately take measures to provide clients with complete and accurate information and review the quality of their agents’ consultation and sales techniques, Vietnam News reported.

Dung said the association would work closely with insurers to provide veracious information to customers and improve the latter’s service quality, including enhancing agents’ training and consulting, sales and appraisal processes.

… Read the rest

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Storm victims caught in massive ‘roofing scheme’ with Texas firm

  • May 21, 2023

Like those other storm victims, Smith has no idea what happened to her insurance money.

In December, Apex quoted her a little over $12,000 for a new roof. In January, she got a settlement notice for $22,600. A breakdown of the settlement stated $12,500 would go to Smith, and the other 44 percent of it – about $10,000 – would go to cover legal fees and expenses on a claim where no lawsuit had been filed.

The settlement document also granted MMA “limited power of attorney to endorse all checks for settlement proceeds… on your behalf.” Smith signed it but has never seen any of the money and her roof is still not fixed. 

Butler said Apex hasn’t seen any of that money either, and the roofer “is not happy about that.”

Recently, Smith’s mother-in-law saw a TV ad by New Orleans injury lawyer Morris Bart, encouraging MMA clients to hire his firm instead. Smith is one of more than 600 former MMA clients to hire Bart associate Austin Marks to represent her. Marks said he was able to get Smith’s insurance company to void any settlement checks that MMA had endorsed.

“They took advantage of homeowners. They took advantage of insurance companies,” Marks said. “They lied, cheated and stole from everyone.”
Smith wonders how she could have protected herself from something Judge North called “an unprecedented tableau of misconduct.”

“If the judge don’t know what to say, like if no one has even seen this before, where do we go from here?”

“Insured to Lose” continues Tuesday (March 2) with Part 2, describing what Judge North describes as a separate part of MMA’s “scheme.”

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How to Increase Life Insurance Sales in a Battered Market

  • May 12, 2023

What You Need to Know

  • The life insurance shopping process takes many consumers three or more months.
  • For a few weeks, consumers want to hear from you and insurers about life insurance.
  • Which consumers? And which weeks?

Life insurance demand fell precipitously between February 2021 and the end of 2022.

Activity levels have started to recover, a little, but, at Verisk, we saw 17 straight months of negative year-over-year growth in life insurance. The industry charted less application activity as a result.

A line chart that shows life application activity rising sharply from about January 2020 through October 2021, than falling back to baseline levels. (Image: Verisk)

Why did that drop in activity occur, and what can life insurance providers do to generate applications during slow periods?

Consumers have been facing sustained inflation and tightened budgets. The theory is that they are simply less interested in life insurance, and distracted by more immediate financial priorities.

Life insurance is a discretionary instrument; even in stable times, only 52% of Americans have any life insurance, and 106 million adults (about 41% of the U.S. adult population) do not believe they have adequate life insurance coverage.

Amidst the recent economic turbulence, even motivated life insurance shoppers have been letting existing policies lapse, or taking longer to buy new coverage.

You, the distributors and the insurers that write the coverage, have to work harder to reach new customers and retain current policyholders.

The Solution

Where there is risk, there is opportunity.

Savvy distributors are taking this time to build their capabilities, generate interest in a quiet market, and establish differentiated relationships with customers, powered by personalization.

While this may sound like a difficult strategy to implement, it’s more than feasible with the right tools.

Here are four steps to take to create demand in a down market.

1. Know who you want to sell to.

Not every consumer need is equal, and not every buying journey

… Read the rest
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ITR filing: What income tax rule says on premium paid for life insurance policy of a house wife

  • May 11, 2023

My wife and me have life insurance policies of ₹25 lakh each. My wife does not have any income. Can I claim deduction u/s 80C in respect of the premium paid for her?.

Premiums paid by an individual for life cover taken for self, spouse, and children are eligible for the deduction u/s 80C. As far as payment of premium for children is concerned it is not necessary that the children should be dependent on you. So the child for which you can pay the life insurance premium can be major or minor, married or unmarried. This can be used to optimise the tax outgo in the family as the earning children have so many eligible items like school fee and repayment of home loan under Section 80 C that in most of the cases these items overflow their bucket of section 80 C whereas the parents specially the retired do not have many avenues to claim deduction under Section 80C. So they can pay the life insurance premium on the life of their earning children which otherwise would have not been eligible for deduction in their hands. Please note the children can not claim deduction for payment of life insurance on the policies of their parents but can claim deduction under Section 80D for payment of health insurance premium even if the parents are not dependent on the child.

Let me tell you the purpose of buying life insurance is to protect the dependent family members in the eventuality of earning family member’s death and should never be bought for the purpose of saving taxes. Since your wife does not have any income, you should not have bought any life insurance policy on her life and it would make more financial sense for you to have taken

… Read the rest
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State Life: The outlier in Pakistan’s insurance industry – Business

  • May 6, 2023

How many people around you have ever willingly bought an insurance policy? It can’t be a lot, at least if you exclude the Sehat card that the citizens of Khyber Pakhtunkhwa and Punjab are entitled to. That’s because Pakistan has one of the worst insurance penetration rates among regional or economic peers — at just 0.91 per cent (life and general insurance combined).

It’s sort of ironic because the country has no shortage of events for which one needs insurance against — reckless drivers on the road that risk your life, contaminations that harm your health, or workplaces that offer no pensions. You would imagine more people wanting to protect themselves from such uncertainty, right?

There are multiple reasons why insurance as an industry has failed to take off. From religious perceptions to distribution, nothing seems to have really worked out in the past.

Surprisingly, the only outlier which outperformed the market has been a public sector entity: State Life Insurance Corporation. To put its scale in context, it is among the largest employers in the country with around 5,500 staff and 130,000 sales personnel registered, according to Chairman Shoaib Javed Hussain.

You’re probably thinking what’s the big deal about that since public sector organisations are almost always bloated. That’s not necessarily the case here because unlike others, it is a profitable entity that recorded a net income of Rs9.32 billion in the first nine months of fiscal year 2022 (9M2022).

For insurance companies, a better indicator of financial health is probably the premium revenue, the collections from policyholders, which reached Rs279bn in 2022. This was 64pc higher compared to the previous year and puts it among some of the biggest organisations in the country in any sector.

In insurance specifically, State Life is by far the largest player.

… Read the rest
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North Carolina Rate Bureau seeks 28.4% increase for car insurance

  • March 9, 2023

RALEIGH, N.C. (WNCN) — The North Carolina Rate Bureau has filed a request with the state Department of Insurance to increase auto policies, according to state Insurance Commissioner Mike Causey

The bureau asked for a 28.4% statewide increase in private passenger auto insurance. If approved, it would become effective on Oct. 1.

“We want to make sure that the consumers are being afforded a fair rate,” said Barry Smith, deputy director of Communications/Safety Officer for the Department of Insurance. “It’s also important that the automobile insurers are able to make a living.”

The bureau represents car insurance companies in the state and is not a part of the state Department of Insurance. State law requires the bureau to submit auto rate filings with the department each year by Feb. 1.

According to the personal finance company Bankrate, the average annual full-coverage premium in Raleigh this year is $1,359. The 28.4% increase would raise it to $1,744.96, meaning a monthly payment would go from $113.25 to $145.41.

“Whatever rates do get approved, that will be the base rate,” Smith said. “That doesn’t mean everybody will pay what that ends up being,” Smith said.

Causey stated that he and members of the department’s staff will review the filing and determine whether the increase is justified.

The department said that if they do not agree with the requested increase, they can negotiate a settlement or call for a hearing.

“This is a request,” Smith said. “This is nowhere near being approved or anything like that. Our actuaries, our legal experts, our experts in property and casualty insurance are reviewing those figures and there are hundreds of pages.”

… Read the rest
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Insurance companies request 28.4% rate increase for auto insurance in North Carolina

  • March 7, 2023

Insurance companies want to raise drivers’ rates for car insurance.

The North Carolina Rate Bureau represents insurance companies in their dealings with state leaders. The bureau submitted a filing to the North Carolina Department of Insurance to increase prices on auto policies statewide by 28.4%, North Carolina Insurance Commissioner Mike Causey announced Thursday.

Any change would become effective on Oct. 1.

Causey is set to review the request to determine whether the requested increase is justified and to negotiate with the rate bureau.

If the department does not agree with the requested increase, it can negotiate a settlement or call for a hearing.

North Carolina law requires the bureau to submit auto rate filings with the department each year by Feb. 1.

A ValuePenguin study cited an S&P data report showing North Carolina’s annual car insurance rate changes compared to the previous year:

2017: 4.1%

2018: -0.8%

2019: 0.7%

2020: -1.3%

2021: -0.3%

2022: 3.7%

In 2022, consumer financial services company insurance/car/average-cost-of-car-insurance-in-north–carolina/”Bankrate found the average North Carolina car insurance cost is $1,392 each year for full coverage and $431 annually for state minimum coverage limits.
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Rate hike, inflation contribute to rising cost of home insurance
Proposal Would Give Auto Insurers Rate Control

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YAFO demands exemption of vehicle insurance funds from Ghana’s DDEP

  • March 5, 2023

He said despite the agreement with the Ghana Insurers Association, caution needs to be taken since the entities that watched on for the Government to excessively borrow into this current crisis are the same entities to supervise risk mitigations.

Mr Dwamena, in an interview with the Ghana News Agency (GNA), was of the view that the country could a not fford to risk vehicle insurance that would be needed during an eventuality.

He contended that exempting vehicle insurance would not significantly impact the government’s DDEP because the government needs to first demonstrate its commitment to ensuring financial stability rather than falling on individuals’ funds safeguarded for unforeseen circumstances.

He indicated that insurance penetration was low in Ghana due to a widespread notion of unwillingness to pay claims to subscribers.

“According to our Driver MO 2022 report, the benefit of vehicle insurance is yet to be realized because most subscribers have reported that they subscribe to third-party to avoid police harassment and also to fulfil statutory obligations, making most Ghanaians reluctant to report for insurance claims,” he stated.

Mr Dwamena explained that the National Road Safety Authority (NRSA) reported that a total of 17,272 vehicles were involved in accidents of which about 1,900 lives perished in 2022 and therefore, there was the need for the readiness of funds to compensate victims during any eventuality.

He said the DDEP was an invitation involving GH¢137 billion exchanges for domestic notes and bonds and promises to deploy all regulatory and supervisory tools to mitigate risks to financial stability.

He noted that the current situation with debt to GDP hovering around 97%, was not a sudden event but an accumulation of reckless borrowing and spending.

Mr Dwamena cautioned that it was time to put a ceiling on government borrowings and provide a transparent and

… Read the rest
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Car insurance costs pushed up by paint and energy prices

  • March 1, 2023

Rising paint prices and higher energy costs were among the reasons for a leap in the cost of motor insurance late last year, a trade body has said.

The average price paid for cover rose by 8% in the final three months of the year, compared with the previous quarter, the Association of British Insurers (ABI) said.

The typical premium of £470 was up 7% on the last three months of 2021.

Repair and courtesy car costs were factors in the increase, the ABI said.

The rise in the cost of paint and the jump in energy prices were among the factors that made vehicle repairs cost more, the trade body said.

Jonathan Fong, senior policy adviser of general insurance at the ABI, said: “Every motorist wants the best insurance deal, especially when coping with cost-of-living pressures, and insurers continue to do all they can to keep motor insurance as competitively priced as possible.

“Yet, like many other sectors, insurers continue to face higher costs, such as more expensive raw materials, which are becoming increasingly challenging to absorb.

“Anyone concerned about being able to continue paying their motor insurance premium should speak to their insurer about any alternative payment options that may be available.”

The price paid for renewing an existing motor insurance policy was typically £428, the ABI said, whereas the average price paid for a new deal was a record high of £531.

Rules introduced by the City regulator, the Financial Conduct Authority, in January are designed to ensure people who are loyal to the same insurer are not penalised for doing so.

The rules state that the price paid by renewing customers for motor and home insurance is no greater than the price charged to an equivalent new customer for the equivalent policy bought through the same

… Read the rest
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