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'Consistent Compounder' insurance stock can rise another 24%, Motilal Oswal saysSBI Life has been a consistent compounder, with annualised premium equivalent growth at a compound annual growth rate of 15% between FY20 and FY25, compared to 6% for the overall industry.By Meghna Sen  March 18, 2026, 10:48:02 AM IST (Published)2 Min ReadShares of SBI Life Insurance Company Ltd. are trading higher on Wednesday, March 18, extending gains for the third consecutive session.

Brokerage firm Motilal Oswal Financial Services has reiterated its 'Buy' rating on the stock, with a price target of ₹2,400 per share, implying a potential upside of 24% from current levels.

The brokerage said that SBI Life has been a consistent compounder, with annualised premium equivalent growth at a compound annual growth rate of 15% between financial years 2020 and 2025, compared to 6% for the overall industry.

In the year-to-date period of FY26, the company has reported growth of 15% year-on-year, ahead of the industry's 13%.

This performance has been supported by its strong distribution network, including the extensive branch network of State Bank of India and one of the largest agency forces in the private life insurance industry.

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Motilal Oswal expects the company's growth trajectory to remain stable at around 15% annually over financial years 2026 to 2028.

The brokerage added that SBI Life remains well positioned to benefit from structural growth in India's life insurance sector, supported by low insurance penetration and a large protection gap, which together provide a long runway for sustained double-digit growth.

The insurer combines this favourable industry backdrop with a strong distribution franchise anchored by the SBI bancassurance network, enabling consistent growth in annualised premium equivalent and healthy new business profitability.

Over the medium term, the brokerage expects mid-teen annualised premium equivalent growth, supported by improving agent productivity, deeper penetration within the SBI ecosystem, and expansion in protection and non-participating product segments.

At the same time, an improving product mix, higher contribution from protection products, and strong operational efficiency are expected to support stable to gradually improving value of new business margins, which are projected to reach 28.5% by FY28.

The combination of sustained premium growth, stable margins, and disciplined cost management is expected to help the company deliver an operating return on embedded value of around 18% going forward.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsSBI LifeSBI Life Insurance Companyshare market today