SBI Life Insurance shares experienced a decline of more than 5% on October 24, reaching Rs 1,624, due to disappointing Q2 results that did not meet market expectations.

Key metrics such as Annual Premium Equivalent (APE) and Value of New Business (VNB) were reported to be 11% and 14% lower than estimates, respectively. The decrease in VNB margin by 160 basis points year-over-year to 26.9% was attributed to a shift in the business mix towards lower-margin linked and participating products.

Despite this weaker performance, brokerages remain positive about SBI Life's growth potential. UBS has maintained a 'Buy' rating with a target price of Rs 1,940, while Motilal Oswal has set a higher target of Rs 2,100 per share. Analysts believe that the introduction of new products will revive the protection segment, which is a key driver of profitability, and that ongoing investments in distribution channels and digital initiatives will support growth. Motilal Oswal projects an 18% compound annual growth rate (CAGR) in APE and VNB from FY24 to FY27, with a Return on Embedded Value (RoEV) stabilizing around 20% by FY27.