SBI Life Insurance reported a net profit of Rs 428 crore for the first half of the current financial year, an increase of 5 per cent over the same period last year. This was aided by strong growth in total New Business Premium, which grew by 77 per cent to touch Rs 4,644 core, as against Rs 2,626 crore last year.
Renewal Premium grew by 26 per cent to touch Rs 3,715 crore, against Rs 2,496 crore last year. As on September 30, 2016, the total Assets Under Management (AUM) touched Rs 87,784 crore, as against Rs 74,554 crore last year, said a press release issued by the company.
SBI Life's Individual New Business Premium (APE) rose by 54 per cent at Rs 2,069 crore for the six month period ended September 30, 2016, while the industry grew at 18 per cent during the same period. The Company has also achieved a market share of 20 per cent in APE, amongst the private life insurers, the release said.
The efficiency parameters of the company were also healthy with Solvency Ratio at 2.14 and 13th month Persistency (premium basis excluding group and rural business) at 78.14 per cent, an increase of 1.6 per cent over the previous period.
Arijit Basu, MD and CEO, SBI Life Insurance, said, "The customer-centric approach in all our processes and strong performance of our distribution channels has enabled us to register such robust growth."
Operating expenses to Gross Written Premium ratio for the company has gone down by 16 per cent during the first half.
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74 per cent of the total capital and BNP Paribas Cardif the remaining 26 per cent. The insurance company has authorised capital of Rs 2,000 crore and a paid up capital of Rs 1,000 crore.
SBI is looking to sell up to five per cent stake in SBI Life Insurance to a non-promoter entity. This transaction would help to discover pricing for the insurance company which would be listed in the future.