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SBI rules out general insurance IPO this fiscal, may consider in 2018-19

SBI owns 70.1% in the insurer, Cardif controls 26%, and KKR and Temasek the remaining stake

Press Trust of India  |  New Delhi 

SBI
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of has said it may look at taking the general business public next fiscal, ruling out any such move in 2017-18.rules out general IPO this fiscal, may consider in 2018-19

General is a joint venture between and Group. While holds 74 per cent stake in the JV, the rest is with IAG.



"It has reported profit in 2016-17 and we will wait for a year or so before going for IPO," Managing Director (associates and subsidiaries) Kumar Khara told PTI.

He said however that Life will go in for the initial public offer (IPO), wherein and its foreign partner Cardif together offload 12 per cent stake, within a few months. proposes to sell 8 per cent, while Cardif of France, 4 per cent.

On General Insurance, Khara said the company has achieved break-even in 2016-17, the 6th full year of operations, and recorded a profit of Rs 153 crore as against the loss of Rs 120 crore in 2015-16.

Its gross written premium rose by 27 per cent to Rs 2,607 crore in 2016-17, as compared to Rs 2,041 crore in the previous fiscal.

Khara said Life will soon file the Draft Red Herring Prospectus (DHRP), but did not provide the timeline.

At the end of March 31, 2016, Life had an embedded value - present value of future profit - of Rs 13,000 crore. Solvency ratio was 2.04 as against the regulatory mandate of 1.5. It had lowest operating expense in the industry of 7.8 per cent, down from 9.2 per cent a year ago.

Life is a joint venture between SBI, the country's largest lender, and BNP Paribas Cardif. owns 70.1 per cent in the insurer, Cardif - 26 per cent, and KKR and Temasek the remaining stake.

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SBI rules out general insurance IPO this fiscal, may consider in 2018-19

SBI owns 70.1% in the insurer, Cardif controls 26%, and KKR and Temasek the remaining stake

SBI owns 70.1% in the insurer, Cardif controls 26%, and KKR and Temasek the remaining stake of has said it may look at taking the general business public next fiscal, ruling out any such move in 2017-18.rules out general IPO this fiscal, may consider in 2018-19

General is a joint venture between and Group. While holds 74 per cent stake in the JV, the rest is with IAG.

"It has reported profit in 2016-17 and we will wait for a year or so before going for IPO," Managing Director (associates and subsidiaries) Kumar Khara told PTI.

He said however that Life will go in for the initial public offer (IPO), wherein and its foreign partner Cardif together offload 12 per cent stake, within a few months. proposes to sell 8 per cent, while Cardif of France, 4 per cent.

On General Insurance, Khara said the company has achieved break-even in 2016-17, the 6th full year of operations, and recorded a profit of Rs 153 crore as against the loss of Rs 120 crore in 2015-16.

Its gross written premium rose by 27 per cent to Rs 2,607 crore in 2016-17, as compared to Rs 2,041 crore in the previous fiscal.

Khara said Life will soon file the Draft Red Herring Prospectus (DHRP), but did not provide the timeline.

At the end of March 31, 2016, Life had an embedded value - present value of future profit - of Rs 13,000 crore. Solvency ratio was 2.04 as against the regulatory mandate of 1.5. It had lowest operating expense in the industry of 7.8 per cent, down from 9.2 per cent a year ago.

Life is a joint venture between SBI, the country's largest lender, and BNP Paribas Cardif. owns 70.1 per cent in the insurer, Cardif - 26 per cent, and KKR and Temasek the remaining stake.
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Business Standard
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SBI rules out general insurance IPO this fiscal, may consider in 2018-19

SBI owns 70.1% in the insurer, Cardif controls 26%, and KKR and Temasek the remaining stake

of has said it may look at taking the general business public next fiscal, ruling out any such move in 2017-18.rules out general IPO this fiscal, may consider in 2018-19

General is a joint venture between and Group. While holds 74 per cent stake in the JV, the rest is with IAG.

"It has reported profit in 2016-17 and we will wait for a year or so before going for IPO," Managing Director (associates and subsidiaries) Kumar Khara told PTI.

He said however that Life will go in for the initial public offer (IPO), wherein and its foreign partner Cardif together offload 12 per cent stake, within a few months. proposes to sell 8 per cent, while Cardif of France, 4 per cent.

On General Insurance, Khara said the company has achieved break-even in 2016-17, the 6th full year of operations, and recorded a profit of Rs 153 crore as against the loss of Rs 120 crore in 2015-16.

Its gross written premium rose by 27 per cent to Rs 2,607 crore in 2016-17, as compared to Rs 2,041 crore in the previous fiscal.

Khara said Life will soon file the Draft Red Herring Prospectus (DHRP), but did not provide the timeline.

At the end of March 31, 2016, Life had an embedded value - present value of future profit - of Rs 13,000 crore. Solvency ratio was 2.04 as against the regulatory mandate of 1.5. It had lowest operating expense in the industry of 7.8 per cent, down from 9.2 per cent a year ago.

Life is a joint venture between SBI, the country's largest lender, and BNP Paribas Cardif. owns 70.1 per cent in the insurer, Cardif - 26 per cent, and KKR and Temasek the remaining stake.

image
Business Standard
177 22