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Friday, May 02, 2014

SBI Life posts 19% increase in net profit to Rs 740 crore in FY2014

Individual New Business Premium APE grows by 17.7%, Assets Under Management (AUM) rises 13% to Rs 58480 crore 

Continuing its track record of sustainable growth, SBI Life Insurance has posted a record profit of Rs 740 crore, during the financial year ending March 2014, an increase of 19% over the last financial year. Operational efficiency has been the key driver of SBI Life's profitability. The Company is the market leader amongst the private life insurers, in New Business Premium (NBP), for the financial year 2013-14. 

Atanu Sen, Managing Director and CEO, SBI Life Insurance, said, "Our continued business success is a testimony to our being a customer centric organization. Despite tough economic environment, we were able to maintain a very healthy growth on various business parameters. We have recently introduced more customer friendly products and remain committed to bring new socio-economic and geographical segments within the insurance umbrella towards fulfilling overall goal of financial inclusion." 

SBI Life's regular new business premium increased by 14.5%, to Rs 2998 crore during the financial year 2013-14, from Rs 2618 crore in FY2013. In line with its focus on improving strategic business mix, the Company's market share through individual business has increased to 16.8%, for FY2014, from 13.8% during FY2013. The individual new business premium APE grew by 17.7% to Rs 2809 crore during FY2014, from Rs 2387 crore during FY2013. The AUM has grown by 12.7%, to Rs 58480 crore at end March 2014 from Rs 51912 crore at end March 2013. 

SBI Life has a low Expense Ratio of 11.4%. The Company has garnered a new business market share of 17.2% amongst private players for FY2014. 

Leveraging wider reach achieved through its 762 branches network, SBI Life has systematically brought large rural areas under insurance umbrella. The Company has sold 23.4% of total policies in this segment during FY2014. Additionally, 79463 lives out of total of 966866 group lives covered by the Company are from the underprivileged social sector. The Company has been substantially exceeding the minimum social and rural regulatory norms.
During the last financial year, SBI Life launched a new Corporate Campaign to highlight the need for a healthy dialogue within family on its preparedness to meet any eventuality, as it is the family that suffers the most in case of any unfortunate development. Latest Insurance Awareness campaign is in continuation of Customer Education campaign of the Company launched earlier. 

In line with IRDA guidelines, SBI Life introduced new products during the last financial year to cater to diverse financial (Protection, Savings, Wealth Creation, Retirement Child etc.) needs of a family. These include: Pure Protection Plans – Smart Shield and Saral Shield; Online Product – eShield; Guaranteed Income Plans – Smart Wealth Builder and Flexi Smart Plus; Money Back Plan - Smart Money Back Gold; Retirement Plans – Retire Smart and Saral Pension; and Child Plan – Smart Scholar.
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