SBI Life Insurance profit up 12% at Rs 622 cr

Private life insurer SBI Life Insurance posted profit of Rs 622 crore for financial year 2012-13, an increase of 12 per cent over the previous fiscal. The company's regular new business premium increased by 19 per cent to Rs 2,618 crore during the year, from Rs 2,193 crore in  FY12.

"Distinctively, the operational efficiency has been the key driver of SBI Life’s profitability," said a company release. The share of single premium from the new business individual premium reduced to 16 per cent, during the FY 2012-13 from 41 per cent during the FY 2011-12. The Asset Under Management (AUM) rose by 11 per cent to Rs 51,912 crore in FY13 from Rs  46,576 crore 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's expense to gross written premium (GWP) ratio stood at 11 per cent. The company release said that SBI Life has garnered a market share of 17 per cent amongst private players during the FY 2012 – 13 as per the latest report from Insurance Regulatory and Development Authority (Irda).

About 23 per cent of total policies of SBI Life are from rural segment and additionally, 68,714 lives covered by the company are from the underprivileged social sector.