Life Insurance Companies - Comparison


#41

My family members will apply for SBI Life. I might apply if priced nicely.

Further, I’m going to apply for HDFC Life. :smiley:


(newone) #42

:slight_smile: I am waiting for HDFC Life as well. Just concerned if it is going to be overpriced. SBI Life, am not sure yet (being in PSU category) but started buying ICICI Pru in very small quantities.


#43

Saurabh Mukherjea says Insurance Companies may be played as black to white money and financial inclusion theme and suggests this as “mega investment” themes.


#44

SBI Life is given a valuation of 4.25 times EV as per the report that it is a Rs 8400 Cr IPO. ICICI Pru Life is available for 3.89 times now!

http://economictimes.indiatimes.com/markets/stocks/news/sbi-life-insurance-gets-sebi-approval-for-rs-8400-crore-ipo/articleshow/60405500.cms


(ram1984) #45

ICICI lombard has a reservation for ICICI Bank share holders. I am a shareholder in ICICI Bank. I apply through ASBA (Corporation bank). Any idea how can i take benefit of the reservation


#46

Another news item that SBI Life is looking a Rs 6500- Rs 7000 Cr IPO.

Thus valuation of 3.25 times to 3.5 times EV. ICICI Pru Life is available for 3.85 times EV now. Lets see how they price the IPO.

@desaidhwanil,
Could you please share your views on Life insurance companies if you are tracking them?

@ram1984,
You can infact bid under regular as well as under ICICI Bank shareholder. You can select the category when the issue opens.


(newone) #47

Seems to be 8400 crore IPO…seeing flashes in cnbc tv 18.


(newone) #48

IPO details - http://www.livemint.com/Money/qBrs1nqfTU1EIJy9QpWcCO/SBI-Life-IPO-to-be-launched-next-week.html


(newone) #49

This values SBI life at 70000 crores at the top end. Would be interesting to see at what value it would list. Also interesting now would be the HDFC Life IPO valuation.


#50

Valued at ~4.2 times EV. Pricey IMO. Almost 10% premium to ICICI Pru Life. Am not going to apply.


(newone) #51

:slight_smile: This is “bull market”…


(hemtan100) #52

61st month persistency
Max Life: 54%
SBI Life: 68%
ICICI Pru Life: 56%
HDFC Life: 57%

Max Life : 295%
ICICI Life: 284%
SBI Life: 204%
HDFC Life: 192%

Mcap - AUM
Max Pru Life: 16000 - 47023
SBI: 70000 - 97736
ICICI Pru: 61910 - 122919
HDFC Life: ?? - 91737


(hemtan100) #53

Max Life ended Q1 with AUM of 45.8k cr.
After the merger deal with HDFC was called off, AUM shooted up to 47k cr.
MAX now on its own, chances are that it will be back to industry leading growth rates.


(newone) #54

It is interesting to see the price movement in ICICI Prudential. It has come down from 440+ to 420+ now and the market cap is around 61000 crores when SBI life IPO is starting soon valuing it at 70000 Crores. I was expecting ICICI Pru price to be increasing based on the SBI Life IPO. Does this mean SBI Life is clearly overvalued?


(newone) #55

Hi, If I hold only 1 share of ICICI Bank, can I apply to ICICI Lombard IPO with 2 applications (each for 2 Lakhs amount worth shares)?


#56

My spouse is an ICICI Bank shareholder and applied for ICICI Pru Life IPO under shareholders reservation as well as retail reservation. The bids were not rejected but got only one lot allotted. So I guess even with one share you may apply under shareholder reservation apart from retail reservation.

I feel SBI Life is pricey (or ICICI Pru Life looks “cheaper” whichever way we look at). That’s the reason, I’m not interested to apply for this issue. We can as well buy ICICI Pru Life now.

SBI Life is better in some way:

  • Huge banca network of over 27k branches!!
  • Has the lowest Operating Expense Ratio
  • Better ratios (net cash added, ROIC)

But there is hardly much to separate to choose between the three of them and I don’t see why ICICI Pru life is quoting at a discount of almost ~12% wrt SBI Life valuations.


(newone) #57

Thanks. And yes, SBI Life looks pricey / ICICI Pru looks cheap. I guess HDFC Life will not be cheap for sure :slight_smile:
I will wait for HDFC Life and perhaps buy ICICI Pru in small quantities. To decide on SBI Life later once it lists.
Even if HDFC Life is priced higher, will have to see how much premium it lists at. We can take some clue from the IPOs of ICICI Lombard & SBI Life


#58

August premium figures for new business is now available:
https://www.irdai.gov.in/ADMINCMS/cms/frmwhats_List.aspx

August month premium growth vs YOY
HDFC Life - 38%
ICICI Pru Life - 5%
SBI Life - -0.24% (minus 0.24%)

Year till date premium growth vs YOY
HDFC Life - 33%
ICICI Pru Life - 37%
SBI Life - 3%


(newone) #59

There are huge variations in this for all companies in varying time period. Not sure how to assess that


(hemtan100) #60