06 May 2020 Results Review 4QFY20 SBI Life Insurance · SBI Life Insurance Page | 2 : Results...

06 May 2020 Results Review 4QFY20

SBI Life Insurance

HSIE Research is also available on Bloomberg ERH HDF <GO> & Thomson Reuters

Challenging Year Ahead SBILIFE’s 4QFY20 performance was marginally below expectations, as

NBP/APE declined 11.8/12.6% YoY due to the lockdown, while VNBM

sustained at 20.7% (+90bps YoY). Despite SBILIFE’s ambition to post APE

growth in FY21E, given the macros, we remain skeptical. We rate SBILIFE a

BUY with a reduced TP of Rs 975 (Mar-21E EV + 28.9x Mar-22E VNB).

4QFY20 protection APE was at Rs 3.2bn (+28.0/39.1% YoY/QoQ, 11.8%

share). Retail/group protection grew 6.2/66.7% YoY. For FY20, total

protection share improved 212bps YoY to 8.9%.

4QFY20 NPAR sales continued at a strong pace growing 17x/-5.3%

YoY/QoQ to Rs 1.8bn. For FY20, the higher margin NPAR product share

grew to 6.6% (+647bps YoY). As a result of lower interest rates, incremental

contribution from NPAR is expected to reduce considerably in FY21E.

FY20 VNBM improved 90bps YoY to 20.7%. Margin improved as a result of

1) better product mix (+480bps), 2) change in operating assumptions

(CRNHR mainly, -130bps), and 3) change in eco. assumptions (-250bps).

Covid-19 impact: Growth in Mar/Apr-20 has been severely impacted.

Business is expected to decline over 1QFY21, however SBILIFE still believes

that a single digit APE growth is possible in FY21E. The company is using

digital sales methods- video calling, tele-medicals etc and is focusing on

training agents. SBILIFE is also in the process of reworking its arrangement

with re-insurers to increase tele-medical limits (IPRU has already done this).

The company is also seeing only ~65% renewal rates. With lowest cost ratios,

SBILIFE will continue to invest in its business. Any cost reduction initiative

will only be undertaken in 2HFY21.

Over FY21E we expect covid-19 and changes in personal taxation to cause

significant disruption to insurance sales (FY21E APE: -13.1% YoY). We

however take a longer term view on the business and appreciate the

strong distribution footprint of its parent SBI (24k+ branches), improving

protection share (FY20: 8.9%, +212bps YoY), lowest operating cost ratios

(9.9%), and improving margins (VNBM: 20.7%). We expect SBILIFE to

deliver strong FY20-22E VNB CAGR of 23.3% and RoEVs of ~13.4/15.1%.

We rate SBILIFE a BUY with a TP of Rs 975 (Mar-21E EV + 28.9x Mar-22E

VNB). Lower growth, renewals, and protection share are key risks to our

call.

Financial Summary

(Rs mn) 4Q

FY20

4Q

FY19

YoY

(%)

3Q

FY20

QoQ

(%) FY18 FY19 FY20 FY21E FY22E

NBP 38.0 43.1 (11.8) 49.7 (23.5) 109.7 137.9 165.9 160.3 182.4

APE 27.1 31.0 (12.6) 33.6 (19.3) 85.4 96.9 107.4 93.3 106.2

Adj. VNB NA NA NM NA NM 15.7 19.2 22.2 19.6 22.9

Adj. VNBM (%) # 20.7 19.8 90bps 20.5 NM 18.4 19.8 20.7 21.0 21.6

EV

201.0 236.6 276.4 313.3 356.8

MCap/EV (x)

3.6 3.0 2.6 2.3 2.0

P/VNB (x)

34.9 26.7 21.5 22.3 17.5

ROEV(%)

17.0 18.9 16.8 13.4 15.1

# Refers are FYTD margins Source: Company, HSIE Research

BUY

CMP (as on 5 May 2020) Rs 714

Target Price Rs 975

NIFTY 9,206

KEY

CHANGES OLD NEW

Rating BUY BUY

Price Target Rs 1046 Rs 975

VNB % FY21E FY22E

-2.3% -6.6%

KEY STOCK DATA

Bloomberg code SBILIFE IN

No. of Shares (mn) 1,000

MCap (Rs bn) / ($ mn) 714/9,422

6m avg traded value (Rs mn) 2,062

52 Week high / low Rs 1,030/519

STOCK PERFORMANCE (%)

3M 6M 12M

Absolute (%) (21.6) (26.4) 7.4

Relative (%) 1.9 (4.6) 26.7

SHAREHOLDING PATTERN (%)

Dec-19 Mar-20

Promoters 62.8 62.8

FIs & Local MFs 5.6 5.7

FPIs 26.4 25.9

Public & Others 5.2 5.6

Pledged Shares 0.00 0.00

Source : BSE

Madhukar Ladha, CFA [email protected]

+91-22-6171-7323

Page | 2

SBI Life Insurance : Results Review 4QFY20

Business update

4QFY20 Total APE grew -12.6/-19.3% YoY/QoQ to Rs 27.1bn. Renewal premium

posted healthy growth of 15.2% YoY.

Protection pricing: SBILIFE sees limited impact from this as its products are

priced on the higher side. The company may not re-price at all or just increase

price slightly. Re-pricing is not expected to impact the margins as SBILIFE

expects to use other available levers to reduce costs.

For FY20: Within group protection (NBP basis) credit protect grew 19.6% yoY to

Rs 13.5bn while GTI business grew 42.3% YoY to Rs 2bn.

FY20 persistency improved across all buckets except the 25th month; SBILIFE is

seeing only ~65% renewal rates in Apr-20. True persistency will only be known

after the 3 moratorium on premium payment is over.

Total cost ratio in 4QFY20 increased to 9.9% (26/56bps YoY/QoQ) as business

declined and was hit by negative operating leverage.

4QFY20 RPAT was Rs 5.1bn (+10.9/24.4% YoY/QoQ) as actuarial liability

declined. FY20 PAT grew 6.8% YoY to Rs 14.1bn despite a difficult equity

markets.

The company provided for ~Rs 1.3bn as provisions mainly against its investment

in DHFL. According to the company all stressed exposure has been provided for

and 92% of portfolio is in AAA bonds.

AUM was at Rs 1.6tn (+13.7/-2.3% YoY/QoQ). Debt/Equity mix was 79/21%.

Solvency was down to 195% (-1800/-3500bps YoY/QoQ). Solvency was impacted

by large MTM on equity.

Added UCO Bank as a partner.

Embedded Value and VNB

FY20 VNBM improved 90bps YoY to 20.7%. Margin improved as a result of 1)

better product mix (+480bps), 2) change in operating assumptions (CRNHR

mainly, -130bps), and 3) change in eco. assumptions (-250bps).

The company provided for additional CRNHR of 2-2.5% which was the main

reason for the negative operating assumption change.

Future margin levers: Higher share of protection, and cost efficiency would

drive further improvement in margins and will also increase EV.

EV for FY20 was positively impacted by operating experience variance.

Perisistency/mortality/expenses contributed Rs 2.1/1.1/0.1bn, while other

operating variance was also positive Rs 1.9bn- mainly as a result of reserve

release on CRNHR.

Operating assumption change contributed Rs 1.2bn.

EV was also negatively impacted negative economic variance/assumption change

of Rs 7.1bn.

The company reported a FY20 operating RoEV of 20.0% (+236bps YoY).

Breakup of Economic variations and assumptions

(Rs bn) FY20

MTM on debt 9.3

MTM on equity (10.0)

Revenue account investment surplus- shareholders 4.0

Others 1.7

Change in VIF due to lower rates (12.0)

Total economic variance (7.1)

Source: Company, HSIE Research

Page | 3


Five quarters at a glance (Rs Bn) 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 YoY (%) QoQ (%)

Premium earned 113.8 66.9 102.5 117.6 119.3 4.8 1.4

Ceding -0.4 -0.4 -1.3 -0.7 -0.7 75.0 0.0

Net premium earned 113.4 66.5 101.2 116.9 118.6 4.6 1.5

Investment income 42.7 31.3 26.6 41.9 -66.4 -255.5 -258.5

Other income 0.2 0.1 0.1 0.2 0.1 -50.0 -50.0

Total income 156.3 97.9 127.9 159.0 52.3 -66.5 -67.1

Commission 4.6 2.5 4.1 4.5 5.1 10.9 13.3

Operating expenses 7.9 6.2 7.5 8.0 8.5 7.6 6.3

Policyholder tax 0.3 1.8 0.6 0.7 0.7 133.3 0.0

Claims paid (net) 70.8 28.6 32.5 61.8 39.6 -44.1 -35.9

Change in actuarial liability 67.8 55.1 82.0 79.9 -6.6 -109.7 -108.3

Total expenses 151.4 94.2 126.7 154.9 47.3 -68.8 -69.5

PBT 4.9 3.7 1.2 4.1 5.0 2.0 22.0

Tax 0.3 0.1 -0.1 0.0 -0.1 -133.3 NM

PAT 4.6 3.6 1.3 4.1 5.1 10.9 24.4


Operating and performance metrics

Particulars (Rs bn) 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 YoY (%) QoQ (%)

Product mix on APE basis

Individual Savings 27.4 15.6 24.8 30.2 23.3 -15.0 -22.8

Par 5.2 2.7 3.0 3.4 2.6 -50.0 -23.5

Non Par 0.1 0.5 3.2 1.9 1.8 1700.0 -5.3

ULIP 22.1 12.4 18.6 24.9 18.9 -14.5 -24.1

Group Savings 1.1 1.0 1.3 1.1 0.6 -45.5 -45.5

Protection 2.5 2.1 2.0 2.3 3.2 28.0 39.1

Individual Protection 1.6 1.1 1.2 1.1 1.7 6.2 54.5

Group Protection 0.9 1.0 0.8 1.2 1.5 66.7 25.0

Total APE 31.0 18.7 28.1 33.6 27.1 -12.6 -19.3

Product mix - APE basis (%)

Individual Savings 88.4 83.4 88.3 89.9 86.0 -241bps -390bps

PAR 16.8 14.4 10.7 10.1 9.6 -718bps -52bps

Non-PAR 0.3 2.7 11.4 5.7 6.6 632bps 99bps

ULIP 71.3 66.3 66.2 74.1 69.7 -155bps -437bps

Group Savings 3.5 5.3 4.6 3.3 2.2 -133bps -106bps

Protection 8.1 11.2 7.1 6.8 11.8 374bps 496bps

Individual Protection 5.2 5.9 4.3 3.3 6.3 111bps 300bps

Group Protection 2.9 5.3 2.8 3.6 5.5 263bps 196bps

Total APE 100 100 100 100 100

Individual APE share (%) 93.5 89.3 89.5 93.2 92.3 -130bps -90bps

Group APE share (%) 6.5 10.7 10.5 6.8 7.7 130bps 90bps

Reported VNB Margin (%)# 17.7 17.9 18.1 18.3 18.7 100bps 40bps

Adjusted VNB Margin (%)# 19.8 19.9 20.2 20.5 20.7 90bps 20bps


Note: #VNB margins for FY19 and for FYTD periods in respective quarters of FY20.

Premium earned was

subdued on account of low

sales in Mar-20.

MTM losses in equity led to

losses in investment income.

APE declined (12.6% YoY) on

account of steep decline in

ULIP segment (-14.5% YoY).

NPAR witnessed strong

growth (17x YoY).

Protection continued to do

well despite a difficult sales

environment in Mar-20.

Page | 4


Particulars (Rs mn) 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 YoY (%) QoQ (%)

Product mix (NBP basis)

Individual Savings 28.7 17.6 28.5 34.3 26.8 -6.6 -21.9

Par 5.0 2.7 3.0 3.3 2.6 -48.0 -21.2

Non Par 0.6 1.7 5.4 4.3 3.7 516.7 -14.0

ULIP 23.1 13.2 20.1 26.7 20.5 -11.3 -23.2

Group Savings 8.5 9.6 13.2 10.3 4.8 -43.5 -53.4

Protection 5.8 4.3 5.0 5.2 6.3 8.6 21.2

Individual Protection 1.6 1.1 1.3 1.2 1.7 6.2 41.7

Group Protection 4.2 3.2 3.7 4.0 4.6 9.5 15.0

Total 43.0 31.5 46.7 49.8 37.9 -11.9 -23.9

Product mix (NBP basis) (%)

Individual Savings 66.7 55.9 61.0 68.9 70.7 397bps 184bps

Par 11.6 8.6 6.4 6.6 6.9 -477bps 23bps

Non Par 1.4 5.4 11.6 8.6 9.8 837bps 113bps

ULIP 53.7 41.9 43.0 53.6 54.1 37bps 48bps

Group Savings 19.8 30.5 28.3 20.7 12.7 -710bps -802bps

Protection 13.5 13.7 10.7 10.4 16.6 313bps 618bps

Individual Protection 3.7 3.5 2.8 2.4 4.5 76bps 208bps

Group Protection 9.8 10.2 7.9 8.0 12.1 237bps 411bps

Total 100.0 100.0 100.0 100.0 100.0

Channel mix (%)

Banassurance 61.8 57.0 57.0 63.1 62.1 30bps -99bps

Agency 21.0 18.0 18.0 20.1 24.2 319bps 414bps

Others 17.2 25.0 25.0 16.9 13.7 -350bps -315bps

Operating expenses Ratio (%) 9.6 11.2 9.9 9.3 9.9 26bps 56bps

AUM (Rs bn) 1,410 1,470 1,548 1,642 1,604 13.7 -2.3

Linked (%) 49 49 50 50 49 0bps -100bps

Non-Linked (%) 51 51 50 50 51 0bps 100bps

Equity (%) 23 23 23 24 21 -200bps -300bps

Debt (%) 77 77 77 76 79 200bps 300bps

Persistency (%)

13th month persistency 85.1 84.5 83.1 82.5 84.3 -78bps 183bps

25th month persistency 76.7 76.0 75.9 75.5 77.2 52bps 171bps

37th month persistency 71.4 70.6 68.9 68.9 70.1 -126bps 123bps

49th month persistency 66.4 67.9 65.8 64.6 64.6 -187bps -6bps

61st month persistency 57.2 56.3 59.8 61.1 59.4 221bps -162bps


PAR and protection

expected to grow in FY21E.

NPAR expected to remain

sub-dued as guaranteed

rates have been revised

lower.

ULIP expected to grow

2QFY21 onwards.

Cost ratios for SBILIFE

continues to be best in

industry- opex ratio was

contained at 9.9%.

AUM growth was robust at

13.7% YoY taking total

AUM to Rs 1.6tn.

Persistency trends were

mixed it declined QoQ for

49th/61st month.

Page | 5


Estimate Change

Rs bn FY21E FY22E

Old New Change Old New Change

APE 102.3 93.3 -8.8 119.8 106.2 -11.4

VNB 20.1 19.6 -2.3 24.6 22.9 -6.6

VNB Margin 19.6 21.0 140.0 20.5 21.6 110.0

EV 311.0 313.3 0.7 356.7 356.8 0.0


APE trend


Product Mix On NBP basis


12

.8

20

.9

24

.7

26

.9

13

.2

23

.8

28

.9

31

.0

18

.7

29

.0

33

.6

27

.1

43

.7

33

.8

42

.2

11

.8

2.9

13

.7

16

.8

15

.2

41

.7

22

.0

16

.3

(12

.6)

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

1Q

FY

18

2Q

FY

18

3Q

FY

18

4Q

FY

18

1Q

FY

19

2Q

FY

19

3Q

FY

19

4Q

FY

19

1Q

FY

20

2Q

FY

20

3Q

FY

20

4Q

FY

20

APE (Rs bn) - LHS Growth (%) - RHS

50 5646 51 57 54

42 4354 54

11

19

1513

12 12

9 6

7 72

2

1 22

1

5 12

9 10

3218

27 23 17 2030

2821 13

5 5 10 11 12 13 14 11 10 17

0

10

20

30

40

50

60

70

80

90

100

FY

17

FY

18

1Q

FY

19

2Q

FY

19

3Q

FY

19

4Q

FY

19

1Q

FY

20

2Q

FY

20

3Q

FY

20

4Q

FY

20

ULIP PAR Non-PAR Group Protection

We have cut our estimates

to factor in lower APE.

VNB margins are expected

to advance with higher

protection share.

4QFY20 APE saw steep

drop at 12.6% YoY

(2QFY20/3QFY20:

22.0/16.3%), mainly due to

lockdown.

Protection share improved

in 4QFY20.

Page | 6


AUM Mix


VNB Trend


Persistency Trend


23 23 22 22 23 23 23 24 21

77 77 78 78 77 77 77 76 79

0

10

20

30

40

50

60

70

80

90

100

FY

18

1Q

FY

19

2Q

FY

19

3Q

FY

19

4Q

FY

19

1Q

FY

20

2Q

FY

20

3Q

FY

20

4Q

FY

20

Equity (%) Debt (%)

1.2tn1.16tn 1.26tn 1.34tn 1.41tn 1.47tn 1.55tn 1.64tn 1.60tn

15

.7

2.5 7

.1

13

.0

19

.2

3.7

9.5

16

.5

22

.3

18.4

19.0 19.2

19.6

19.8 19.920.2

20.5

20.7

17.0

17.5

18.0

18.5

19.0

19.5

20.0

20.5

21.0

-

5.0

10.0

15.0

20.0

25.0

FY

18

1Q

FY

19

1H

FY

19

9M

FY

19

FY

19

1Q

FY

20

1H

FY

20

9M

FY

20

FY

20

VNB Rs Bn VNB margin - RHS

85

.1

76

.7

71

.4

66

.4

57

.2

84

.5

76

.0

70

.6

67

.9

56

.3

83

.1

75

.9

68

.9

65

.8

59

.8

82

.5

75

.5

68

.9

64

.6

61

.1

84

.3

77

.2

70

.1

64

.6

59

.4

0

10

20

30

40

50

60

70

80

90

13th month 25th month 37th month 49th month 61st month

4QFY19 1QFY20 2QFY20 3QFY20 4QFY20

AUM continues to be debt

heavy (79% share) which

we believe supports

persistencies during

volatile equity market

conditions.

Margin improved as a

result of 1) better product

mix (+480bps), 2) change in

operating assumptions

(CNHR mainly) (-130bps),

and 3) change in economic

assumptions (-250bps).

Persistencies improved

sequentially for 13th, 25th

and 37th buckets during

4QFY20.

Page | 7


Channel Mix On NBP


Sensitivity Analysis

Sensitivity Analysis

FY19

% change in

FY20

% change in

EV VoNB EV VoNB

Increase by 100bps in the reference rates -5.0% 3.0% -3.4% 1.7%

Reference Rate -100 bps 5.0% -3.0% 3.6% -1.8%

Decrease in Equity Value 10% -1.0% 0.0% -1.4% 0.0%

Proportionate change in lapse rate +10% -1.0% -6.0% -1.3% -5.8%

Proportionate change in lapse rate -10% 1.0% 6.0% 1.3% 5.7%

Mortality / Morbidity +10% -2.0% -7.0% -2.3% -8.9%

Mortality / Morbidity -10% 2.0% 7.0% 2.3% 8.9%

Maintenance Expense +10% -1.0% -2.0% -0.6% -2.2%

Maintenance Expense -10% 1.0% 2.0% 0.6% 2.2%

Mass Lapse for ULIPs in the year after the surrender penalty period of 25% -2.0% -8.0% -2.2% -7.7%

Mass Lapse for ULIPs in the year after the surrender penalty period of 50% -5.0% -18.0% -5.3% -18.5%

Tax Rate Change to 25% on normal tax rates -8.0% -15.0% -8.4% -15.6%

Tax Rate Change to 25% on effective tax rates NA NA NA NA


RoEV stack up chart


5362 61 61

7162 57 57 63 62

22

25 23 20

21

2118 18

20 24

2513 16 19

817

25 2517 14

0

10

20

30

40

50

60

70

80

90

100

FY

17

FY

18

1Q

FY

19

2Q

FY

19

3Q

FY

19

4Q

FY

19

1Q

FY

20

2Q

FY

20

3Q

FY

20

4Q

FY

20

Banassurance Agency Others

9.0 9.6 9.47.1 7.3

8.1 8.2 8.0

7.5 7.5

0.9 0.42.3

-0.9

0.1

-0.1 -0.5

0.5

-0.4

0.2

-1.0

1.2

-3.0

0.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

FY18 FY19 FY20 FY21E FY22E

Economic variances Other operating variance Change in operating assumptions

Variance in operating experience Expected return on existing business VNB as % of opening EV

Sales through Agency

witnessed growth of 319bps

YoY to 24%.

The company reported a

FY20 operating RoEV of

20.0% (+236bps YoY).

Page | 8


Embedded Value movement

Particulars (Rs mn) FY18 FY19 FY20 FY21E FY22E

Opening IEV 173,895 200,995 236,609 276,400 313,321

Value added by new business 15,700 19,200 22,200 19,592 22,933

Expected return on existing business 14,100 16,514 19,000 20,730 23,499

Variance in Operating experience 1,600 800 5,500 -2,400 400

Change in operating assumptions -100 -1,000 1,200 -1,000 500

Other operating variance

-500#

IEV operating earnings 31,300 35,514 47,400 36,922 47,332

Economic variances -1,800 2,500 -7,100 0 0

Other non-operating variances 0 0 -509# 0 0

Total IEV earnings 29,500 38,014 39,791 36,922 47,332

Capital contributions / dividend payouts -2,400 -2,400 0 0 -3,873

Closing IEV 200,995 236,609 276,400 313,321 356,780

*FY18 opening IEV adjusted for effective tax rate

#Adjusted to make in-line with co disclosed adjusted EV


Page | 9


Industry NBP data

Particulars

Individual (Rs bn) Group (Rs bn) Total (Rs bn)

FY17 FY18 FY19 FY20 YOY

(%) FY17 FY18 FY19 FY20

YOY

(%) FY17 FY18 FY19 FY20

YOY

(%)

Aditya Birla Sun Life 9.6 11.5 22.0 18.0 -18.1 15.7 15.1 21.9 18.5 -15.3 25.3 26.6 43.9 36.6 -16.7

Bajaj Allianz Life 10.7 14.6 18.0 20.0 11.0 22.2 28.4 31.2 31.8 1.9 32.9 42.9 49.2 51.8 5.2

Bharti Axa Life 4.0 4.7 6.4 6.3 -1.5 2.1 2.6 2.7 1.9 -27.2 6.1 7.3 9.1 8.3 -9.0

DHFL Pramerica Life 2.2 3.6 3.2 1.7 -47.4 6.6 10.9 9.1 3.5 -61.4 8.8 14.5 12.2 5.1 -57.8

HDFC Standard Life 42.0 59.4 76.4 85.2 11.5 45.0 54.0 73.3 88.7 21.1 87.0 113.4 149.7 174.0 16.2

ICICI Prudential Life 69.8 84.0 81.4 78.7 -3.3 8.9 7.2 21.1 44.7 111.8 78.6 91.3 102.5 123.5 20.4

Kotak Mahindra Life 14.4 19.7 21.3 24.0 12.5 14.1 14.5 18.5 27.1 46.7 28.5 34.3 39.8 51.1 28.4

Max Life 33.1 39.8 47.5 51.3 8.1 3.6 3.6 4.1 4.5 9.4 36.7 43.5 51.6 55.8 8.2

SBI Life 64.7 84.1 96.4 112.4 16.7 36.8 25.6 41.6 53.5 28.7 101.5 109.7 137.9 165.9 20.3

Tata AIA Life 10.5 14.0 23.5 30.8 31.0 0.8 0.9 1.3 1.6 28.5 11.3 14.9 24.8 32.4 30.9

Private players Total 321 404 471 503 6.8 186 190 259 306 18.1 507 593 730 809 10.8

LIC 456 517 510 512 0.4 788 828 912 1,267 39.0 1,244 1,346 1,422 1,780 25.2

Industry total* 777 921 981 1,015 3.5 974 1,018 1,171 1,574 34.4 1,751 1,939 2,152 2,589 20.3

Source: IRDAI data, HSIE Research * Total will not add up since we have excluded smaller sized private players

Market share on NBP basis (%)

Particulars Individual Group

FY17 FY18 FY19 FY20 YOY (bps) FY17 FY18 FY19 FY20 YOY (bps)

Aditya Birla Sun Life 3.0 2.9 4.7 3.6 -109 8.5 8.0 8.4 6.1 -238

Bajaj Allianz Life 3.3 3.6 3.8 4.0 15 12.0 14.9 12.0 10.4 -165

Bharti Axa Life 1.3 1.2 1.4 1.3 -11 1.1 1.4 1.0 0.6 -39

DHFL Pramerica Life 0.7 0.9 0.7 0.3 -34 3.5 5.7 3.5 1.1 -235

HDFC Standard Life 13.1 14.7 16.2 17.0 71 24.2 28.5 28.2 29.0 73

ICICI Prudential Life 21.7 20.8 17.3 15.7 -163 4.8 3.8 8.1 14.6 647

Kotak Mahindra Life 4.5 4.9 4.5 4.8 24 7.6 7.7 7.1 8.8 172

Max Life 10.3 9.9 10.1 10.2 12 1.9 1.9 1.6 1.5 -12

SBI Life 20.2 20.8 20.5 22.4 189 19.8 13.5 16.0 17.5 144

Tata AIA Life 3.3 3.5 5.0 6.1 113 0.4 0.5 0.5 0.5 4

Private players* 41.3 43.8 48.0 49.5 154 19.1 18.6 22.2 19.5 -269

LIC 58.7 56.2 52.0 50.5 -154 80.9 81.4 77.8 80.5 269

Industry 100 100 100 100 0 100 100 100 100 0

Source: IRDAI data, HSIE Research * Total will not add up since we have excluded smaller sized private players

Valuation Comps

Unit

Bloomberg Ticker

IPRU MAXF SBILIFE HDFCLIFE

Rating

BUY

BUY

BUY

Not

Rated

Current market price Rs

375

452

714

478

Market Capitalisation Rs bn

538

156

714

962

Target price Rs

460

560

975

540*

Upside/(Downside) %

22.7

23.8

36.6

13.0

Profitablity

FY20 FY21E FY22E FY20E FY21E FY22E FY20 FY21E FY22E FY20 FY21E FY22E

VNB Margin % 21.7 23.4 24.4 21.3 19.3 20.2 20.7 21.0 21.6 25.9 27.3 27.7

Total RoEV % 8.4 13.6 15.2 17.9 13.3 16.8 16.8 13.4 15.1 12.7 15.6 16.6

Operating RoEV % 15.2 13.6 15.2 19.0 13.3 16.8 20.0 13.4 15.1 18.2 15.6 16.6

Non-operating RoEV % -6.8 0.0 0.0 -1.1 0.0 0.0 -3.2 0.0 0.0 -5.5 0.0 0.0

RoE % 15.5 18.4 17.8 20.2 20.4 19.6 17.4 20.1 21.6 23.5 24.4 26.8

Page | 10


Bloomberg Ticker Unit IPRU MAXF SBILIFE HDFCLIFE

Valuation at CMP


P/EV x 2.3 2.1 1.8 1.7 2.1 1.9 2.6 2.3 2.0 4.7 4.1 3.6

P/EVOP x 16.4 17.2 13.7 11.1 16.9 12.6 15.1 19.3 15.1 29.0 29.9 24.7

Implied P/VNB x 20.1 20.0 15.2 11.6 17.9 14.9 21.5 22.3 17.5 40.6 44.8 36.9

Implied P/VIF x 3.5 3.2 2.9 3.2 3.0 2.7 4.1 3.7 3.3 7.1 6.3 5.6

P/B x 7.1 6.1 5.4 7.2 6.5 5.8 8.0 6.6 5.5 13.7 11.8 9.9

P/E x 48.3 35.9 32.1 38.0 35.1 32.9 50.2 35.9 27.6 64.7 51.9 40.2

P/AUM x 0.3 0.3 0.3 0.2 0.3 0.3 0.4 0.4 0.3 0.8 0.6 0.6

Valuation at TP/FV


P/EV x 2.9 2.5 2.2 2.1 2.6 2.4 3.5 3.1 2.7 5.3 4.6 4.0

P/EVOP x 20.1 21.1 16.8 13.8 20.9 15.5 20.6 26.4 20.6 32.7 33.8 27.9

Implied P/VNB x 27.7 27.9 21.9 17.6 25.6 21.7 33.3 35.7 28.9 47.1 52.2 43.2

Implied P/VIF x 4.3 4.0 3.6 3.9 3.7 3.4 5.6 5.0 4.5 8.1 7.2 6.3

P/B x 8.8 7.5 6.6 8.9 8.0 7.2 11.0 9.0 7.5 15.5 13.3 11.2

P/E x 59.3 44.0 39.4 47.0 43.4 40.7 68.6 49.1 37.8 73.1 58.6 45.4

P/AUM x 0.4 0.4 0.3 0.2 0.2 0.2 0.6 0.5 0.4 0.9 0.7 0.6

Source: Company financials and disclosures, HSIE Research


Per Share data


EV Rs 160 181 206 268 214 234 276 313 357 102 116 134

EVOP Rs 23 22 27 46 27 36 47 37 47 16 16 19

VNB Rs 11 11 13 23 14 16 22 20 23 10 8 10

VIF Rs 106 115 128 182 151 167 175 193 217 67 75 85

Book Value Rs 52 61 70 63 70 78 89 109 131 35 40 48

Earnings Rs 8 10 12 12 13 14 14 20 26 7 9 12

AUM Rs 1,143 1,240 1,432 1,989 1,720 1,962 1,588 1,869 2,185 630 737 859

ANW Rs 55 65 78 82 79 85 110 129 149 36 41 49

Key parameters


APE Rs bn 74 66 75 40 36 39 107 93 106 72 62 71

VNB Rs bn 16 15 18 9 7 8 22 20 23 19 17 20

Total EVOP Rs bn 18 31 39 17 13 18 47 37 47 23 32 39

Operating EVOP Rs bn 33 31 39 17 13 18 47 37 47 33 32 39

Non- operating EVOP Rs bn -15 0 0 -1 0 0 -8 0 0 -10 0 0

EV Rs bn 230 259 296 99 105 115 276 313 357 207 235 270

Net worth Rs bn 75 88 101 31 34 38 89 109 131 70 82 97

Net Profit Rs bn 11 15 17 6 6 7 14 20 26 15 19 24

AUM Rs bn 1,640 1,780 2,056 735 845 964 1,588 1,869 2,186 1,273 1,488 1,733

Growth YOY


APE % (5.4) (10.9) 14.0 1.5 (11.3) 9.2 10.8 (13.1) 13.8 18.4 (13.9) 15.4

VNB % 20.9 (4.1) 18.9 (0.3) (19.6) 14.3 15.6 (11.7) 17.1 24.6 (12.2) 17.1

Total EVOP % (50.7) 72.5 25.8 1.4 (22.5) 34.2 33.5 (22.1) 28.2 (32.2) 38.5 21.4

Operating EVOP % (13.4) (4.9) 25.8 1.4 (22.5) 34.2 33.5 (22.1) 28.2 8.5 (3.2) 21.4

Non- operating EVOP % NM NM NM NM NM NM NM NM NM NM NM NM

EV % 6.5 12.6 13.9 10.5 6.0 9.2 16.8 13.4 13.9 12.9 13.7 14.9

Net worth % 9.7 16.3 14.8 11.8 11.3 10.6 19.1 22.4 20.2 24.0 16.5 18.6

Net Profit % (2.9) 34.6 11.7 5.6 8.3 6.7 7.2 39.7 29.9 16.7 24.6 29.2

AUM % 2.3 8.5 15.5 17.0 15.0 14.0 14.0 17.7 16.9 1.4 17.0 16.5

Page | 11


Operational Comps


APE mix FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

Individual Rs bn 65.2 75.8 74.4 67.9 26.4 32.2 39.2 27.2 60.2 77.9 90.8 99.0 37.4 48.9 52.0 61.4

Group Rs bn 1.1 2.1 3.7 5.9 0.2 0.3 0.3 0.2 5.8 7.5 6.1 8.5 3.5 6.3 10.6 12.7

APE (Rs bn) Rs bn 66.3 77.9 78.0 73.8 26.6 32.5 39.5 27.4 66.0 85.4 96.9 107.5 40.9 55.2 62.6 74.1

YoY Growth % 30 18 0 (5) 26 22 22 20 35 29 13 11 13 35 13 18

CAGR 3 years %

15 4

22 NA

26 -

20 22

CAGR 5 years %

19 10

31 NA

25 -

20 18

Business mix-

product wise FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

*Total

APE

*Total

APE

*Total

APE

*Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

* Total

APE

Individual % 98.4 97.3 95.3 92.0 97.0 96.0 96.0 94.0 89.5 92.5 93.7 92.1 89.3 88.4 83.1 82.9

PAR % 9.6 10.9 8.6 12.7 54.0 43.0 39.5 29.5 16.6 24.4 18.7 10.9 31.2 24.8 15.0 15.7

Non-PAR % 1.1 0.5 0.9 4.2 9.0 8.0 9.0 20.0 0.7 0.8 0.4 6.9 8.0 8.0 16.6 37.3

ULIP % 84.1 81.9 79.6 64.7 30.0 41.0 41.5 36.5 70.9 66.5 70.8 69.6 46.4 51.3 45.7 23.2

Protection % 3.6 4.0 6.2 10.4 4.0 4.0 6.0 8.0 1.2 0.7 3.8 4.7 3.6 4.4 5.8 6.6

Group % 1.6 2.7 4.7 8.0 3.0 4.0 4.0 6.0 10.5 7.5 6.3 7.9 10.7 11.6 16.9 17.1

Savings % 1.3 1.0 1.6 3.3 NA NA NA NA 5.5 2.8 3.3 3.7 6.5 4.7 6.0 6.6

Protection % 0.3 1.7 3.1 4.7 3.0 4.0 4.0 6.0 5.1 4.7 3.0 4.2 4.2 6.9 10.9 10.6

Total % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Channel mix

(Overall) FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

*Total

APE

*Total

APE

*Total

APE

*Total

APE

* Ind

APE

* Ind

APE

* Ind

APE

* Ind

APE *NBP *NBP *NBP *NBP

* Total

NBP

* Total

NBP

* Total

NBP

* Total

NBP

Bancassurance % 57.3 52.3 56 51 70.0 72.0 69.6 67.0 53.0 62.0 64.0 60.0 52.0 48.0 49.0 51.0

Agency % 23.8 25.4 22 21 29.0 27.0 29.8 32.0 22.0 25.0 21.0 20.0 32.0 33.0 26.0 23.0

Direct % 9.8 13.5 12 13 - - - - - - - - 7.0 10.0 16.0 17.0

Brokers and

others % 9.1 8.8 11 15 1.0 1.0 1.0 1.0 25.0 13.0 15.0 20.0 9.0 9.0 9.0 10.0

Total % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 101.0

Banca channel partners

ICICIB and SCB (AXIS, YES, LVB) SBI, P&SB, SIB, SYB, ALB HDFCB, RBL, IDFCB, BFL

AUM FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

AUM Rs bn 1,229 1,395 1,604 1,530 444 522 628 964 977 1,163 1,410 1,604 917 1,066 1,256 1,272

Equity % 46.8 47.0 48.0 40.0 24.0 22.0 22.0 22.0 23.2 23.0 23.0 21.0 41.0 39.0 38.0 29.0

Debt % 53.2 53.0 52.0 60.0 76.0 78.0 78.0 78.0 76.8 77.0 77.0 79.0 59.0 61.0 62.0 71.0

Linked % 71.5 69.9 NA NA 35.0 33.0 32.0 30.0 54.0 53.0 49.0 49.0 52.0 57.0 NA NA

Non-linked % 28.5 30.1 NA NA 65.0 67.0 68.0 70.0 46.0 47.0 51.0 51.0 48.0 43.0 NA NA

Solvency ratio FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

Solvency % 281 252 215 194 309 275 242 220 204 206 213 195 192 192 188 184

Market Share FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

Individual NBP Private Market Share % 21.7 20.8 17.3 15.8 10.3 9.9 10.1 9.5 20.2 20.8 20.5 22.4 13.1 14.7 16.2 17.0

Individual APE Private Market Share % 22.3 20.9 17.6 17.0 9.2 9.0 9.6 9.0 20.7 21.8 22.3 23.2 12.7 13.3 12.5 14.2

VNB Margin FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

Margin % 10.1 16.5 17.0 21.7 18.2 20.2 21.7 21.0 15.7 18.4 19.8 20.7 22.3 23.2 24.6 25.9

Page | 12


Banca channel partners

ICICIB and SCB (AXIS, YES, LVB) SBI, P&SB, SIB, SYB, ALB HDFCB, RBL, IDFCB, BFL

Persistency FY17 FY18 FY19 FY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20

13th month % 85.7 87.8 87.4 85.3 80.0 80.0 83.0 85.0 81.1 83.0 85.1 84.3 80.9 87.0 87.2 90.1

25th month % 73.9 78.8 78.0 77.4 70.0 72.0 71.0 72.0 73.9 75.2 76.7 77.2 73.3 77.0 80.4 80.2

37th month % 66.8 68.9 71.3 69.0 60.0 62.0 64.0 63.0 67.4 70.0 71.4 70.1 63.9 71.0 72.0 73.8

49th month % 59.3 63.6 65.2 66.4 55.0 57.0 58.0 60.0 62.5 63.9 66.4 64.6 58.3 62.0 67.7 67.2

61th month % 56.2 54.8 57.6 57.4 53.0 53.0 53.0 51.0 67.2 58.4 57.2 59.4 56.8 51.0 52.3 55.0


Performance metrics, growth and ratios Performance metrics (Rs mn) FY18 FY19 FY20 FY21E FY22E

NBP 109,661 137,920 165,925 160,255 182,370

APE 85,400 96,900 107,400 93,295 106,169

VNB* 15,700 19,200 22,200 19,592 22,933

EV* 200,995 236,609 276,400 313,321 356,780

EVOP 31,300 35,514 47,400 36,922 47,332

Rs/share

EPS 11.5 13.3 14.2 19.9 25.8

BV 63.7 74.6 88.8 108.7 130.7

DPS 2.0 2.0 - - 3.2

Growth (%)

Premium Growth 60.6 30.7 22.6 10.4 11.2

Total income growth 11.5 31.1 (0.9) 32.8 11.8

Commissions Growth 56.9 20.1 20.7 (1.6) 11.7

Opex Growth 17.9 23.5 13.6 20.7 7.6

Commissions / premium 4.5 4.1 4.0 3.6 3.6

Opex / premium 6.8 6.5 6.0 6.5 6.3

PAT Growth 33.6 15.3 7.2 39.7 29.9

Performance metrics growth (%)

NBP 8.1 25.8 20.3 (3.4) 13.8

APE 29.3 13.5 10.8 (13.1) 13.8

VNB 51.4 22.3 15.6 (11.7) 17.1

EV 21.5 17.7 16.8 13.4 13.9

EVOP 8.4 13.5 33.5 (22.1) 28.2

EPS 20.5 15.3 7.2 39.7 29.9

BV 16.6 17.0 19.1 22.4 20.2

DPS 32.9 - (100.0) NM NM

Expense ratios (%)

Commissions/premium 4.5 4.1 4.0 3.6 3.6

Opex/premium 6.8 6.5 6.0 6.5 6.3

Total expenses/premium 12.7 12.2 11.7 11.5 11.2

Effeciency ratios (%)

RoAA 1.2 1.0 0.9 1.1 1.2

RoE 20.8 19.2 17.4 20.1 21.6

RoEV return 17.0 18.9 16.8 13.4 15.1

Operating RoEV 18.0 17.7 20.0 13.4 15.1

Non-operating RoEV (1.0) 1.2 (3.2) - -


Page | 13


Valuation

Ratios on CMP FY18 FY19 FY20 FY21E FY22E

P/E (x) 62.0 53.8 50.2 35.9 27.6

P/ABV (x) 11.2 9.6 8.0 6.6 5.5

P/EV (x) 3.6 3.0 2.6 2.3 2.0

P/VNB Multiple (x) 34.9 26.7 21.5 22.3 17.5

P/EVOP (x) 22.8 20.1 15.1 19.3 15.1

P/VIF (x) 6.2 4.7 4.1 3.7 3.3

P/AUM(x) 0.6 0.5 0.4 0.4 0.3

Ratios on TP

P/E (x) 84.8 73.5 68.6 49.1 37.8

P/ABV (x) 15.3 13.1 11.0 9.0 7.5

P/EV (x) 4.9 4.1 3.5 3.1 2.7

P/VNB Multiple (x) 51.6 40.3 33.3 35.7 28.9

P/EVOP (x) 31.2 27.5 20.6 26.4 20.6

P/VIF (x) 8.4 6.4 5.6 5.0 4.5

P/AUM(x) 0.9 0.7 0.6 0.5 0.4

* Adjusted for change in effective tax rate


Page | 14


Financials Profit and Loss Account

(Rs mn) FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E

Policyholder Account

Total premium earned 127,800 156,655 208,525 251,601 328,904 403,240 445,126 494,917

Income from investments and other income 102,568 33,606 93,624 85,248 112,719 30,426 135,868 154,933

Transfer from shareholders account 1,530 931 627 756 989 4,763 1,191 1,238

Total income 231,898 191,191 302,775 337,605 442,612 438,428 582,185 651,088

Commission 6,037 7,143 7,833 11,209 13,464 16,249 15,987 17,859

Operating expenses 11,756 14,581 16,465 17,188 21,235 24,131 29,123 31,336

Provisions 1,184 1,753 2,226 3,527 5,505 6,776 6,063 6,366

Total expenses 18,977 23,477 26,525 31,924 40,203 47,156 51,172 55,562

Benefits paid 82,004 79,669 95,502 117,123 152,938 162,509 243,176 267,293

Change in valuation of liabilities 122,841 79,869 172,410 175,950 235,917 206,049 262,101 296,068

Total 204,844 159,538 267,912 293,073 388,855 368,558 505,277 563,361

Surplus 8,077 8,176 8,339 12,609 13,553 22,714 25,736 32,166

Tax 1,092 1,533 1,798 2,380 2,687 3,767 4,268 5,335

Net surplus 6,985 6,644 6,541 10,229 10,866 18,947 21,467 26,831

Transfer to shareholders account 7,044 6,656 6,546 8,294 9,985 14,627 17,174 21,464

Shareholders account

Transfer from policyholders' a/c 7,044 6,656 6,546 8,294 9,985 14,627 17,174 21,464

Investment income 2,761 3,178 4,016 4,521 5,057 4,767 5,804 7,819

Other income 75 79 82 113 135 68 34 36

Total income 9,880 9,913 10,644 12,928 15,177 19,461 23,011 29,319

Expenses 5 244 271 327 459 563 567 610

Contribution to policyholders' a/c 1,530 931 627 756 989 4,763 1,191 1,238

Profit before tax 8,345 8,738 9,746 11,845 13,729 14,135 21,254 27,470

Taxes 144 127 199 341 461 (86) 1,382 1,648

PAT 8,200 8,610 9,547 11,504 13,268 14,222 19,873 25,822


Balance Sheet

(Rs mn) FY15 FY16 FY17 FY18 FY19 FY20 FY21E FY22E

Source

Share capital 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Reserve and surplus 29,741 36,907 44,648 53,745 64,601 78,839 98,712 120,660

Net worth 39,741 46,907 54,648 63,745 74,601 88,839 108,712 130,661

Credit/debit balance in fair value a/c 653 424 873 1,534 1,162 (1,408) (1,408) (1,408)

Policyholders' a/c 681,698 759,912 936,732 1,114,345 1,351,399 1,531,011 1,793,112 2,089,180

Funds for future appropriation 15 2 - 1,935 2,816 7,137 7,494 7,868

Total Liabilities 722,107 807,246 992,252 1,181,558 1,429,978 1,625,579 1,907,909 2,226,300

Application

Shareholders' Investments 30,702 35,649 42,955 50,144 57,232 68,280 86,873 107,485

Policyholders' investments 315,045 382,559 469,617 544,857 644,724 734,199 - -

Asset to cover linked liabilities 348,101 360,219 445,730 549,359 691,291 785,653 1,781,953 2,078,021

Loans 18 1,236 1,782 1,709 1,725 3,645 3,736 3,829

Fixed assets + DTA 2,715 4,472 5,385 5,813 5,952 5,812 5,957 6,106

Net current assets 25,526 23,111 26,783 29,677 29,054 27,990 29,390 30,859

Debit balance in P&L - - - - - - - -

Total Assets 722,107 807,246 992,252 1,181,558 1,429,978 1,625,579 1,907,909 2,226,300


Page | 15


Rating Criteria

BUY: >+15% return potential

ADD: +5% to +15% return potential

REDUCE: -10% to +5% return potential

SELL: > 10% Downside return potential

Date CMP Reco Target

14-May-19 616 BUY 776

9-Jul-19 759 BUY 850

13-Jul-19 781 BUY 850

24-Jul-19 776 BUY 914

14-Oct-19 840 BUY 940

16-Oct-19 840 BUY 940

24-Dec-19 997 BUY 1,230

30-Dec-19 989 BUY 1,230

9-Jan-20 988 BUY 1,230

11-Jan-20 989 BUY 1,230

22-Jan-20 982 BUY 1,230

2-Mar-20 890 BUY 1,160

11-Apr-20 743 BUY 1,046

6-May-20 714 BUY 975

From 2nd March 2020, we have moved to new rating system

RECOMMENDATION HISTORY

500

600

700

800

900

1,000

1,100

1,200

1,300

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-20

May

-20

SBI LIFE TP

Page | 16


Disclosure:

I, Madhukar Ladha, CFA, MBA author and the name subscribed to this report, hereby certify that all of the views expressed in this research report accurately

reflect our views about the subject issuer(s) or securities. HSL has no material adverse disciplinary history as on the date of publication of this report. We also

certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.

Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative

or HDFC Securities Ltd. or its Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding

the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material

conflict of interest.

Any holding in stock –No

HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475.

Disclaimer:

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market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any

other potential conflict of interests with respect to any recommendation and other related information and opinions.

HSL, its directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments

made or any action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates,

diminution in the NAVs, reduction in the dividend or income, etc.

HSL and other group companies, its directors, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt

in the report, or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies / organizations

described in this report.

HSL or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject

company for any other assignment in the past twelve months.

HSL or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from t

date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage

services or other advisory service in a merger or specific transaction in the normal course of business.

HSL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with

preparation of the research report. Accordingly, neither HSL nor Research Analysts have any material conflict of interest at the time of publication of this

report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. HSL may

have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of

the subject company. We have not received any compensation/benefits from the subject company or third party in connection with the Research Report.

HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg

(East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Compliance Officer: Binkle R. Oza Email: [email protected] Phone: (022)

3045 3600

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Corporate Agent License No.: CA0062; SEBI Research Analyst Reg. No.: INH000002475; SEBI Investment Adviser Reg. No.: INA000011538; CIN -

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HDFC securities

Institutional Equities

Unit No. 1602, 16th Floor, Tower A, Peninsula Business Park,

Senapati Bapat Marg, Lower Parel, Mumbai - 400 013

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06 May 2020 Results Review 4QFY20 SBI Life Insurance · SBI Life Insurance Page | 2 : Results...

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