{"id":135116,"date":"2022-10-25T09:54:59","date_gmt":"2022-10-25T13:54:59","guid":{"rendered":"https:\/\/44.250.171.167\/?p=135116"},"modified":"2023-04-25T08:28:12","modified_gmt":"2023-04-25T12:28:12","slug":"story-behind-sbi-life-insurance-co-q2fy23-results","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/story-behind-sbi-life-insurance-co-q2fy23-results\/","title":{"rendered":"Story Behind SBI Life Insurance Co. Q2FY23 Results"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cWe have registered a 22 percent growth in annual premium equivalent (APE) YoY to Rs 6,830 crore, and 53 percent YoY increase in value of new business to Rs 2,120 crore with value of new business margin rising by more than 6 percentage points to 31% in half year ended September FY23.\u201d<\/p><cite>&#8211; Management, SBI Life<\/cite><\/blockquote>\n\n\n\n<p>Post the COVID 19 Pandemic, there has been a trend towards seeking insurance protection by the general consumer. This trend has resulted in an increase in policy sales for the Life Insurance Industry. The same has been the case for <a href=\"https:\/\/44.250.171.167\/symbol\/sbilife\/\" target=\"_blank\" rel=\"noreferrer noopener\">SBI Life Insurance Co<\/a>.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Embedded Value:<\/strong><\/h6>\n\n\n\n<p>The Life insurance Business generally possesses a longer term horizon. The policies offered by life insurers are usually long term contracts because policyholders pay their premiums spread over several years. Thus to accurately assess a life insurance company, embedded value presents itself as a better alternative than usual metrics of profitability. Embedded Value is the sum of present value (P.V) of all anticipated future profits from the business as well as the shareholder\u2019s wealth.<\/p>\n\n\n\n<div class=\"wp-block-image is-style-default\"><figure class=\"aligncenter\"><a href=\"https:\/\/lh6.googleusercontent.com\/XvZXLDi5ZV79vqGS3QieDPWOYZQ6X_sbUqscn0rDASrgNbrA4767NTlcRK4hR0EmcuNsPfUeeTi6tuEhsu4AheTF99H8JC229A7t8ZPSJCbnyJ8jWI5sB4tJfSvfMVIN_bLkrbszRu-vDtWnb_DqGhdkN72yHzAvJR-EibOjXgEvhz5_Nupndg84nA\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/XvZXLDi5ZV79vqGS3QieDPWOYZQ6X_sbUqscn0rDASrgNbrA4767NTlcRK4hR0EmcuNsPfUeeTi6tuEhsu4AheTF99H8JC229A7t8ZPSJCbnyJ8jWI5sB4tJfSvfMVIN_bLkrbszRu-vDtWnb_DqGhdkN72yHzAvJR-EibOjXgEvhz5_Nupndg84nA\" alt=\"\"\/><\/a><\/figure><\/div>\n\n\n\n<p>Increase in Embedded Value showcases that the firm\u2019s profits are originated through policy sales and not any other accounting changes.<br><\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><br><strong>Product Mix:<\/strong><\/h6>\n\n\n\n<p>In the mid 2000s, the life insurance industry was majorly dominated by ULIP based products. However, due to regulatory changes ULIP based products lost their appeal. Private Insurers then shifted to higher margin products.<\/p>\n\n\n\n<div class=\"wp-block-image is-style-default\"><figure class=\"aligncenter\"><a href=\"https:\/\/lh6.googleusercontent.com\/LPbMjWb_ZDK2Gki_pxt9Q2_UGMIznPQvTCp7gelCyavXD0QOzqPWDFSf3a7UQ8Nrd341gJTVeH9kKWLOL64nn0EVQ5exS1w0Lcvn820-a4wjuOzSiDZGHBfPEZMuxJqK6qs5eLa_vkKPgA8GKShfQFSq-xAbBgKHUqiFY-mLyuGMZaLRYU3XT4g7mQ\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/LPbMjWb_ZDK2Gki_pxt9Q2_UGMIznPQvTCp7gelCyavXD0QOzqPWDFSf3a7UQ8Nrd341gJTVeH9kKWLOL64nn0EVQ5exS1w0Lcvn820-a4wjuOzSiDZGHBfPEZMuxJqK6qs5eLa_vkKPgA8GKShfQFSq-xAbBgKHUqiFY-mLyuGMZaLRYU3XT4g7mQ\" alt=\"\"\/><\/a><\/figure><\/div>\n\n\n\n<p>As per the <a href=\"https:\/\/www.sbilife.co.in\/sbi-life-analyst-presentation-h1-fy23\" target=\"_blank\" rel=\"noopener\">investor presentation<\/a>, it is evident that the largest product for SBI Life Insurance is ULIP. This showcases that SBI Life Insurance has not shifted its focus towards other higher margin products.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\"><strong>Channel Distribution Mix:<\/strong><\/h6>\n\n\n\n<p>In the past, the industry used to depend on Agency based distribution channels. However, with regulatory changes coupled with capital constraints the agency channel became less profitable. The solution came through the bance channel. Banca Channel refers to using bank branches to sell Life Insurance Policies. This provided insurers with a banking heritage a significant advantage such as SBI Life Insurance Co.<\/p>\n\n\n\n<div class=\"wp-block-image is-style-default\"><figure class=\"aligncenter\"><a href=\"https:\/\/lh5.googleusercontent.com\/QVaDPpzkWOjBn4mpGT6nibTa6n74m6QQlNSZ5AQeOfBuzj2e5KMSA8pLIgLCe1wojH7UbHt-TH62yALNv4BdgYRfb7Y2BRxDyRdtKEtD6dCOuVRNxu0GynzLl9vg72B96Drge1vh2zNjTlVTCJo23k6SttmdjD1sEgpgrMl4qvwas5gbeOc5OkpAKw\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/QVaDPpzkWOjBn4mpGT6nibTa6n74m6QQlNSZ5AQeOfBuzj2e5KMSA8pLIgLCe1wojH7UbHt-TH62yALNv4BdgYRfb7Y2BRxDyRdtKEtD6dCOuVRNxu0GynzLl9vg72B96Drge1vh2zNjTlVTCJo23k6SttmdjD1sEgpgrMl4qvwas5gbeOc5OkpAKw\" alt=\"\"\/><\/a><\/figure><\/div>\n\n\n\n<p>As observed through the above diagram, SBI Life Insurance Co.&#8217;s channel mix is dominated by the readymade low cost Banca Channel.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cWe have registered a 22 percent growth in annual premium equivalent (APE) YoY to Rs 6,830 crore, and 53 percent YoY increase in value of new business to Rs 2,120 crore with value of new business margin rising by more than 6 percentage points to 31% in half year ended September FY23.\u201d &#8211; Management, SBI [&hellip;]<\/p>\n","protected":false},"author":1885,"featured_media":135121,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[392,1,6352],"tags":[8233],"class_list":["post-135116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings","category-finance-stocks","category-research-summary","tag-insurance-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-869375868.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":135046,"url":"https:\/\/alphastreet.com\/india\/sbi-life-insurance-company-q2fy23-results-out-net-profit-rises-53\/","url_meta":{"origin":135116,"position":0},"title":"SBI Life Insurance Company Q2FY23 results out: Net Profit rises 53%","author":"Chirag Gupta","date":"October 21, 2022","format":false,"excerpt":"On Friday, SBI Life Insurance reported a 53 percent jump in its net profit for second-quarter, helped by a rise in premiums and as its value of new business grew. Insurance penetration has traditionally been low in India, but that is slowly changing, especially as more people rushed to buy\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"trending stocks high volatility","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/Trending-stocks.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/Trending-stocks.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/Trending-stocks.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":144251,"url":"https:\/\/alphastreet.com\/india\/sbi-life-insurance-q4-fy23-results-out-profit-rises-by-16-percent\/","url_meta":{"origin":135116,"position":1},"title":"SBI Life Insurance Q4 FY23 results out; Profit rises by 16 percent","author":"Chirag Gupta","date":"April 27, 2023","format":false,"excerpt":"SBI Life Insurance Company reported Total revenue for Q4 FY23 of \u20b921,296 Crore up from \u20b920.671 Crore year on year, a growth of 3%. The consolidated Net Profit of \u20b9777 Crore, up 16% from \u20b9672 Crore in the same quarter of the previous year. The Earnings per Share is \u20b97.76\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/0d631008-66c1-430c-bc52-4abfa8e4b808-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/0d631008-66c1-430c-bc52-4abfa8e4b808-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/0d631008-66c1-430c-bc52-4abfa8e4b808-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/0d631008-66c1-430c-bc52-4abfa8e4b808-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/0d631008-66c1-430c-bc52-4abfa8e4b808-1.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/0d631008-66c1-430c-bc52-4abfa8e4b808-1.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":139638,"url":"https:\/\/alphastreet.com\/india\/sbi-life-insurance-limited-q3fy23-16-fall-in-profits\/","url_meta":{"origin":135116,"position":2},"title":"SBI Life Insurance Limited Q3FY23; 16% Fall in Profits","author":"Karan_Singh","date":"January 31, 2023","format":false,"excerpt":"SBI Life Insurance Company Ltd.\u2019s revenue in Q3FY23 rose 30% to \u20b9 26,62,671 lakhs. Consolidated Profit After Tax came at \u20b9 30,413 lakhs showcasing a 16% fall YoY over the corresponding period.","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/Q3FY23-SBILIFE.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/Q3FY23-SBILIFE.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/Q3FY23-SBILIFE.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/Q3FY23-SBILIFE.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/Q3FY23-SBILIFE.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":169038,"url":"https:\/\/alphastreet.com\/india\/sbi-life-insurance-company-ltd-q4fy25-0-rise-in-profits\/","url_meta":{"origin":135116,"position":3},"title":"SBI Life Insurance Company Ltd Q4FY25; 0% rise in Profits","author":"Chirag Gupta","date":"July 7, 2025","format":false,"excerpt":"SBI Life Insurance Company Ltd is engaged in the business of life insurance and annuity. It was started as a Joint-venture between State Bank of India and BNP Paribas Cardif S.A. Financial Results: SBI Life Insurance Company Ltd reported Revenues for Q4FY25 of \u20b923,071.00 Crores down from \u20b936,255.00 Crore year\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/2-2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/2-2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/2-2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/2-2.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/2-2.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/2-2.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":167443,"url":"https:\/\/alphastreet.com\/india\/sbi-life-insurance-company-ltd-q3fy25-71-rise-in-profits\/","url_meta":{"origin":135116,"position":4},"title":"SBI Life Insurance Company Ltd Q3FY25; 71% rise in Profits","author":"Chirag Gupta","date":"March 18, 2025","format":false,"excerpt":"SBI Life Insurance Company Ltd is engaged in the business of life insurance and annuity. It was started as a Joint-venture between State Bank of India and BNP Paribas Cardif S.A. Financial Results: SBI Life Insurance Company Ltd reported Revenues for Q3FY25 of \u20b918,862.00 Crores down from \u20b939,033.00 Crore year\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/03\/3-10.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/03\/3-10.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/03\/3-10.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/03\/3-10.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/03\/3-10.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/03\/3-10.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":169936,"url":"https:\/\/alphastreet.com\/india\/sbi-q1-fy26-earnings-results\/","url_meta":{"origin":135116,"position":5},"title":"SBI Q1 FY26 Earnings Results","author":"Chirag Gupta","date":"August 8, 2025","format":false,"excerpt":"State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking and financial services statutory body headquartered in Mumbai. It is the largest and oldest bank in India with over 200 years of history. Presenting below are its Q1 FY26 earnings results. \u00a0 Q1\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"SBI Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/08\/AlphaStreet-IG-1.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/135116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1885"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=135116"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/135116\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/135121"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=135116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=135116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=135116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}