What you need to know about the investor mix of SBI Life Insurance Company Limited (NSE: SBILIFE)


A look at the shareholders of SBI Life Insurance Company Limited (NSE: SBILIFE) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.

SBI Life Insurance has a market capitalization of 1.2t, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions own shares in the company. We can zoom in on the different property groups, to find out more about SBI Life Insurance.

Check out our latest analysis for SBI Life Insurance

Distribution of the NSEI property: SBILIFE October 2, 2021

What does institutional ownership tell us about SBI life insurance?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

We can see that SBI Life Insurance has institutional investors; and they own a good portion of the company’s shares. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they can be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see SBI Life Insurance historical earnings and earnings below, but keep in mind that there is always more to tell.

profit and revenue growth
NSEI: SBILIFE Earnings and Revenue Growth October 2, 2021

Hedge funds don’t have a lot of shares in SBI Life Insurance. The State Bank of India is currently the largest shareholder, with 55% of the shares outstanding. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. For context, the second largest shareholder owns around 3.8% of the outstanding shares, followed by 2.9% ownership by the third largest shareholder.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. We are not seeing any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

SBI Life Insurance Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of SBI Life Insurance Company Limited. Since this is a large company, we would expect insiders to own only a small percentage. But it should be noted that they own 52 million yen of shares. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.

General public property

With a 17% stake, the general public has some influence over SBI Life Insurance. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Public enterprise ownership

Public companies currently own 56% of the shares of SBI Life Insurance. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand SBI Life Insurance, there are many other factors that we need to take into account. For example, we discovered 2 warning signs for SBI life insurance (1 is a little worrying!) That you should know before investing here.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

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