SBI Life premium income soars 210% in 2003-04

SBI Life Insurance Company has reported a 210 per cent jump in its total premium income at Rs 225 crore in the financial year ended March 31, 2004 as against Rs 72.75 crore in the year-ago period.

In the current fiscal, the promoters (SBI - 74 per cent and Cardif - 26 per cent) have planned a capital infusion of Rs 100 crore to expand their business further. SBI Life's paid up capital now stands at Rs 175 crore.

The company has declared reversionary bonus ranging between one to 2.5 per cent of the sum assured on its various schemes.

New premium at Rs 202.10 crore accounts for almost 90 per cent of the total premium income and the balance (Rs 23.55 crore) is accounted for by renewal premium.

In 2003-04, the company covered 9,35,190 crore new lives (new group lives "" 8,30,996 & new individual lives "" 1,04,194), taking the lives covered since inception to 13,92,867 crore. Individual premium income in the reporting FY was Rs 94.10 crore and group premium income was Rs 131.56 crore.

The total sum assured rose to Rs 26,000 crore as compared to Rs 4,000 crore in FY 2002-03.

According to S Krishnamurthy, managing director & CEO, the group life business contributed 58 per cent of the total premium income whereas the balance was through individual life business.

Among the group life insurance products launched by SBI Life, home loan insurance contributed 57 per cent of the group premium income and from the individual product segment Lifelong Pensions contributed 14 per cent of the total premium income.

A break-up of the channelwise earnings shows that 53 per cent of the total premium came from the bancassurance route; 25 per cent via the agency (agency, corporate agent, brokers) route; 19 per cent through staff; and three per cent via 'Credit Life'.

Cardif eyes personal non-life line: Cardif has set its sights on foraying into the 'personal non-life' business in India. Gerard Binet, deputy managing director & head of international operations, said that the insurance major has long-term plans to get into the 'personal non-life' business, which contributes around 35 per cent to its global premium income of 9.2 billion euros. He, however, declined to give details.