State Bank Of India SBI Life posts Net Profit of Rs 114 Cr in Q1

Mumbai, India (Washington Bangla Radio / prurgent) : SBI Life Insurance, a leading private life insurer, announced a profit of Rs.114 Crores, for the quarter ended June 2010, registering an impressive profit growth of 195% over the corresponding period last year. The total premium of the company grew by 9.5% to Rs. 1,707 Crores during the period. The new business premium collected, during the first quarter, stands at Rs. 976 Crores. Rapidly expanding its presence, the company has introduced 118 branches, recruited 830 employees and added over 5,000 Insurance Advisors.

• Expands by adding 118 new branches
• Asset under Management increases by 65%
• Total Premium Collection grows by 9.5%

Commenting on the results, Mr. Rao, MD & CEO of SBI Life Insurance said “We will focus on building capacity through branch expansion, manpower recruitment and inducting Insurance Advisors so that we are able to serve customers across geographies. Holistically enhancing our performance that balances profitability and growth will remain a key business driver. Our unique multi-distribution model coupled with SBI’s strong brand equity has been an enabler of sustained all round business performance.”

SBI Life’s Assets under Management grew by 65%, over the corresponding period last year, to Rs 30,082 Crore as on 30th June 2010 stands. The company continues to have the lowest expense to GWP (Gross Written Premium) ratio in industry of 9.18%.

As per the latest IRDA report, June 2010, the company has a market share of 14.4% among private life insurers and a total market share of 3.83%.

Retaining the ISO 9001:2000 Certification for superior claim process and reaffirmation of ICRA’s iAAA rating are some of the key distinctions achieved by the company during the last financial year.

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 crores and a paid up capital of Rs 1,000 crores.