SBI Life eyes Rs 11,000-cr business in FY09

SBI Life Insurance, the second largest private life insurance company in India, has targeted a total business volume of Rs 11,000 crore during the current year. Of the Rs 11,000 crore, new business or new premium, both single and regular, will account for Rs 8,500 crore.

The company, a 74:26 joint venture between State Bank of India (SBI) and BNP Paribas Assurance, expects to achieve the target despite a meltdown in the international market and a fall in Indian stock markets.

“The economic recession and a fall in the Sensex will not affect the insurance sector in the country,” said Udaya Sankar Roy, managing director, SBI Life Insurance. He was here to inspect the branch office of SBI Life Insurance division.

Small investors should invest in the insurance sector for the safety and growth of their investment on a long-term basis, besides the life cover,” he said, adding, “I think the investors have understood the situation and started to invest in the sector.”

“The premium collection facility would be extended to the branches of seven associate banks of SBI. We are discussing with the bank authorities and the facilities would be available in the next three months,” Roy informed.

SBI Life Insurance has aimed to open 250 new branches in the country to expand its business this year and the company has already opened 242 new branches, including 11 new ones in Orissa . At present, the insurance company has a network of 424 branches across the country, of which 21 are in Orissa, he said.

In Orissa, the company has targeted a business of Rs 446 crore this year as against Rs 185 crore achieved in the last year. With a customer base of over 67 lakh, SBI Life Insurance has assets under management of Rs 11,727 crore and has been recording net profits for the past three years.