SBI Life posts Rs 23.6 cr profit

SBI Life Insurance Company has wiped out its accumulated losses of Rs 33 crore and has posted a net profit of Rs 23.6 crore for the third quarter ended December 2007. The net profit for the nine month period from April to December 2007 was Rs 37.74 crore.

The company has registered a growth of 130 per cent to Rs 1367 crore in total premium during the quarter compared with Rs 595 crore in the year-ago period.

The new business premium in the third quarter of FY08 stood at Rs 1194 crore compared with Rs 524 crore in the corresponding period a year ago, a growth of 128 per cent.

The new business premium for nine months (April-December 2007) was Rs 2355 crore compared with Rs 1186 crore on a y-o-y basis, a growth of 99 per cent. Total premium grew by 101 per cent to Rs 2748.28 crore during the first nine months of FY08 compared with Rs 1364 crore for the nine months of FY07. SBI Life is the first and only company among the private life insurers to make profits.

US Roy, MD and CEO, SBI Life Insurance, said, "Our business performance for the first nine months has been very encouraging, despite the slowing down of growth in the industry over the last year. Our capital-efficient business model has helped us to wipe out accumulated losses from our balance sheet."

Agency channel contributed to 49 per cent while bancassurance contributed to 44 per cent of SBI Life's total premium collection. The company's Assets Under Management have crossed Rs 7300 crore, as on December 2007.

SBI Life insurance has 187 full-service branches and 33,000 insurance advisors. SBI Life ranks third amongst private life insurance companies in terms of premium collection and has a market share of 12.08 per cent amongst private peers as of November 2007.