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.


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


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.

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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

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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

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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.

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Global law firm Goodwin is setting up a Philly tech, startups and life sciences practice

  • February 11, 2023

Abe Kwon has been representing tech startups through their “life cycle” from incorporation and raising their first capital, all the way through an exit or merger, for more than a decade.

He’s spent his law career at a handful of firms in Philadelphia, and recently joined Goodwin as the firm opens a Philly office serving the life sciences, tech, healthcare and private equity. The firm’s local office so far has 17 partners, including Kwon, who work from a coworking space at the Cira Center, while they look for long-term office real estate. The firm will be hiring associates and support staff when they find a permanent office location, he said.

Though Philly’s life science sector has been growing for a while, the city isn’t traditionally known as a tech hot bed, per Kwon — but he feels that’s starting to change. The choice to move to Goodwin was an easy one for Kwon, who called it “a premiere firm” for those industries.

“Goodwin is uniquely positioned to serve clients at the busy intersection of capital and innovation,” said Rachael Bushey, co-chair of Goodwin’s Philadelphia office, in a statement. “The Philadelphia market sits squarely within this intersection for biotech, healthcare and pharmaceutical companies, entrepreneurs, and investors.”

The practice is home to lawyers specializing in early-stage companies, patent lawyers, and pros with experience taking companies public — a “360-degree scope,” Kwon said. Because he works with companies in the tech and life sciences space, he can speak to the similarities and differences early-stage companies in those industries hold. Raising an early VC round might look similar for two startups, he said, but there’s industry-specific nuance. A biotech company will be looking at navigating the clinical trial process; its intellectual property needs will be different from that of a SaaS company.

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