SBI Life Insurance net profit at Rs. 6.22bn

India Infoline News Service | Mumbai |

The company ranks number one amongst private life insurers, in New Business Premium (NBP), for the Financial Year 2012-13, as per the latest report from IRDA

Reflecting on its sustained superior efficiency in business operations, SBI Life Insurance posted a record profit of Rs. 622 Crores, during the financial year ended on 31st March, 2013, an increase of 12% over the last financial year 2011-12. Distinctively, the operational efficiency has been the key driver of SBI Life’s profitability. The company ranks number one amongst private life insurers, in New Business Premium (NBP), for the Financial Year 2012-13, as per the latest report from IRDA. 

 

Contrary to the continued business decline faced by the life insurance industry, SBI Life’s regular new business premium increased by 19 %, to Rs. 2,618 Cr during the FY 2012-13 from Rs. 2,193 Cr in    FY 2011 -12.In line with its focus on improving strategic business mix, the share of single premium from the new business individual premium reduced to 16%, during the FY 2012-13 from 41% during the FY 2011-12. Consequently, the individual new business premium APE grew by 13.3% to  Rs. 2,388 Cr during FY 2012-13 from Rs. 2,108 Cr during FY 2011-12. The Asset Under Management (AUM) jumped by 11% to Rs. 51, 912 Cr from Rs.  46, 576 Cr as on 31st March, 2012.  

 

Atanu Sen, MD & CEO, SBI Life Insurance said “Despite the continued tough environment, we were able to change the business mix and sustain a profitable growth primarily due to our brand strength, multi distribution model and high productivity of our retail channels. We will further leverage our extensive Bancassurance network, Agency productivity and tap into opportunities emanating from new technology usage.”

 

SBI Life maintains a low “Expense to GWP” ratio of 11%. The company has garnered a market share of 17% amongst private players during the FY 2012 – 13 as per the latest report from IRDA. 

 

23% of total policies of SBI Life are from rural segment which testifies the company’s approach towards life insurance inclusion. Additionally, 68,714 lives covered by the company are from the underprivileged social sector. Consequently, the company has substantially exceeded the minimum social and rural regulatory norms. 

 

During the year, in line with its customer – centric initiatives, the company undertook an extensive customer education program reaching out to all socio-economic segments across the country.  To cater to the protection needs of younger audience whose internet usage is increasing, the company forayed into online distribution by launching an online pure protection plan, e-Shield. Conveniently in three steps, the policyholder can buy life insurance cover of Rs.1 Crore for annual premium of Rs.6,360 per year, subject to age, health profile, policy term and plan option chosen. During the year, the company introduced several new products designed on variety of need-based platforms. These include guaranteed income plan – Smart Income Protect, Pure Protection Plan – Smart Income Shield, and Pension Plan – Saral Pension. 

 

SBI Life won the prestigious Indian Merchant Chambers’ Ramkrishna Bajaj National Quality Award, 2012 in “Service Sector”. Further, SBI Life was rated as the “Most Trusted” Private Life Insurer, 2012 by ET – Brand Equity Nielsen Survey for second year in a row.  Bagging the ISO 10002:2004 certification for efficient Customer Complaint Management System and reaffirmation of CRISIL’s “AAA” rating and ICRA’s "iAAA" rating indicating highest claim paying ability are other key distinctions achieved by the company during FY 2012-13.   

 

Among many CSR initiatives undertaken during the financial year, the company extended support towards education of physically disadvantaged children and underprivileged girl children in remote parts of the country, through its CSR partners Swayamsiddh and Project 

 

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