| SBI LIFE POSTS NET PROFIT OF Rs. 276 Crores Posted 27th April 2010
SBI LIFE POSTS NET PROFIT OF Rs. 276 Crores
Sets new milestones in FY 09 - 10:
* Crosses Rs. 10,000 Crores in GWP
* Grows AUM by 96 %
* Moves up to no.1 ranking, in NBP, amongst private life insurers
Mumbai, April 27, 2010: SBI Life Insurance, the leading private life insurer in the country, has posted a robust Net Profit of Rs 276 crores for the financial year ended March 31st, 2010. Growing by over 40%, the company has set a new milestone, by crossing the landmark figure of Rs 10,000 crores in Gross Written Premium (GWP) during FY 2010. In line with its all round impressive performance, SBI Life’s Asset Under Management jumped by 96% to Rs 28,551 Cr and New Business Annualised Premium Equivalent (APE) by 37 % to Rs. 6,358 Crores.
With a solvency ratio of 2.2 and share capital of Rs.1000 Crore, SBI Life is one of the most capital efficient life insurance companies in the industry. Also, reflecting its superior efficiency in business operations, the company continues to maintain the lowest “expense to GWP (Gross Written Premium)” ratio in industry of 6.5 %.
Highlights of FY 09-10
Gross Written Premium : Rs 10,104 Cr : (40 %)
New Business APE : Rs 6,358 Cr : (37%)
New Business Premium : Rs 7,040 Cr : (31%)
Asset Under Management : Rs 28,551 Cr : (96%)
Commenting on the landmark achievement, Mr. M N Rao, MD & CEO, SBI Life Insurance said “Our focus continues to be achieving both growth and profitability objectives through catering to the life insurance needs of Indian population encompassing all socio-economical and geographical segments.”
One of the key drivers of SBI Life’s rapid growth has been the profitable business growth demonstrated by all key distribution channels namely, Bancassurance, Agency and Corporate Solutions. The Agency Channel provided a significant thrust to the overall business by contributing to 45% of total premium as a result of superior productivity activity levels of Insurance Advisors. Bancassurance witnessed a remarkable growth of 59% and contributed to over 33% cent of the total premium and Group Corporate contributed to 22% of total premium.
Maintaining a balanced mix of market-linked and traditional products, unit-linked product inflows contributed to almost 65% of total premium collections.
SBI Life has moved up from 2nd rank in FY 09 to 1st rank in FY 10, in new business premium, in the private sector life insurance segment, as per the latest IRDA report March 2010. The company has a market share of 18.34% among private life insurers and a total market share of 6.44%.
Retaining the ISO 9001:2000 Certification for superior claim process, globally topping the prestigious international MDRT Table and reaffirmation of ICRA’s iAAA rating are some of the key distinctions achieved by the company during the financial year.
About SBI Life Insurance Co. Ltd:
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 crore and a paid up capital of Rs 1,000 crores. State Bank of India enjoys the largest banking franchise in India.
Along with its 6 Associate Banks, State Bank Group has the unrivalled strength of over 16,000 branches across the country, arguably the largest in the world. BNP Paribas is the 1st largest French company and ranks 5th in the banking industry worldwide. It is 6th most valuable international banking brand as per Brand Finance 2008.
BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s leading Bank. BNP Paribas, part of the worlds top 10 groups of banks by market value and part of Europe top 3 banking companies, is one of the oldest foreign banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest life insurance company in France, and a worldwide leader in Creditor insurance products.
SBI Life Insurance’s mission is to emerge as the leading company offering a comprehensive range of Life Insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency.
SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail Agency, Institutional Alliances and Corporate Solutions distribution channels.
SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across the country provides a vibrant base for insurance penetration across every region and economic strata in the country, thus ensuring true financial inclusion. Agency Channel, comprising of the most productive force of over 65,000 Insurance Advisors, offers door to door insurance solutions to customers
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