SBI Life Insurance targets 30 percent growth in first-year premiums

Mumbai-based SBI Life Insurance said on Saturday that it is targeting a 30 percent growth in first-year premiums this fiscal.

Company's managing director and CEO Arijit Basu said the projected growth will come in through selling of insurance products through banks which he termed as the bancassurance model. It will be followed by another 20 percent growth in its retail segment. The bancassurance model is expected to have a 45 percent growth this year.

"We are looking at a 30 percent growth (in first year premiums) this fiscal year (2015-16) mostly through the banacassurance model," he said on the sidelines of an insurance summit organised by the Indian Chamber of Commerce (ICC) here.

The company will be recruiting between 10,000-15,000 people to boost sales of insurance products from the banks. Presently, these insurance agents account for an odd 30,000 personnel.

The company, a 74:26 joint venture between State Bank of India and BNP Paribas Cardif, had reported a revenue of Rs.12,867 crore during 2014-15 with first-year premiums accounting for over Rs.5,529 crore.

Asked over the possibility of listing on the country's bourses, Basu said there was no immediate capital requirement and a probable listing can take place in another two years time.

"Currently there is no requirement for capital... maybe in two year's time we can explore listing options," he said.

The French firm BNP Paribas Cardif is increasing its stake by 10 percent to 36 percent in the company.

"Talks have begun and maybe it can happen within this year," he said.