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SBI Life Insurance Company Ltd.

BSE: 540719 Sector: Financials
NSE: SBILIFE ISIN Code: INE123W01016
BSE 00:00 | 26 Nov 1128.40 -30.70
(-2.65%)
OPEN

1159.95

HIGH

1159.95

LOW

1105.85

NSE 00:00 | 26 Nov 1130.35 -29.15
(-2.51%)
OPEN

1154.00

HIGH

1154.00

LOW

1105.25

OPEN 1159.95
PREVIOUS CLOSE 1159.10
VOLUME 53309
52-Week high 1273.40
52-Week low 825.00
P/E 91.37
Mkt Cap.(Rs cr) 112,869
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1159.95
CLOSE 1159.10
VOLUME 53309
52-Week high 1273.40
52-Week low 825.00
P/E 91.37
Mkt Cap.(Rs cr) 112,869
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SBI Life Insurance Company Ltd. (SBILIFE) - Chairman Speech

Company chairman speech

RIDING

EVERY CHALLENGE

Dear Stakeholders

At the onset let me wish all of you and every member of your familythe best of health and well-being. We are living through difficult times a global healthcrisis of unimaginable scale has taken a huge toll on lives and livelihoods. Even in theseunprecedented times we continue to deliver on our pledge of making available a wide rangeof products and services in the life insurance and pension segments across all corners ofthe nation. In our ultimate pursuit of protecting the future of our customers we havecemented our position as a leader among private life insurers.

We are pleased to report yet another year of robust all-roundperformance as we remain the leader among private players in terms of individual NBP andIRP. Our performance vis--vis the industry is largely attributable to the relentlessefforts of our people and various business partners who have provided seamless support onall fronts. With their unwavering dedication we are confident of achieving moretogether.

In FY20 PAT increased to Rs14.22 billion from Rs13.27 billion in FY19and GWP grew 23.2% y-o-y to Rs406.35 billion. On an actual tax rate basis our IndianEmbedded Value (IEV) reached Rs262.91 billion as on March 31 2020 from Rs 224.02billion as on March 31 2019. This performance against the backdrop of a slowing economyand intensifying competition speaks volumes about our strong fundamentals.

The global economy has witnessed its weakest growth since the financialcrisis of FY09 due to US-China trade tensions and increased protectionism weakconsumption and sluggish business sentiment. The novel coronavirus (COVID-19) outbreak inthe fourth quarter of FY20 and the subsequent nationwide lockdown to contain the spreadbrought major global economies including India to a standstill. India recorded itsslowest GDP growth in 11 years at 4.2% down from 6.1% a year earlier.

The varied restrictions on mobility and other non-essential economicactivities in light of the pandemic pose a significant challenge for businesses worldwidewhich is further aggravated by dampened consumer sentiment and overall aversion todiscretionary spending. The Indian government along with the Reserve Bank of India (RBI)was quick to announce and implement stimulus measures to minimise the impact and put theeconomy back on track. However the International Monetary Fund (IMF) and other globalinstitutions expect India's GDP to contract by at least 4% in FY21 before staging asharp rebound in FY22.

Although the magnitude of the impact is yet to be ascertained it islikely to vary across countries and industries. Europe and North America appear to havebeen the worst affected to date while Asia has managed it comparatively well in terms offatalities. China specifically seems to have managed to contain the virus spread whileIndia continues to witness an increasing number of cases on a daily basis albeit at lowmortality rates. Keeping in view the various measures announced by the central governmentwe remain positive. However risks to any forecasts are on the downside as the pandemicsituation is currently fluid.

That said the crisis has increased awareness about the importance oflife and health globally and influenced the way people perceive the importance ofprotection against life's uncertainties. The life insurance industry in India hasbeen on an upward trajectory but given the country's low insurance penetrationthere exists a vast untapped opportunity. We are well equipped to unlock this immensepotential with our comprehensive portfolio innovative products unparalleled reach androbust digital platforms. The current environment has also brought to the fore collectivehuman ingenuity not just to survive through a global crisis but also to thrive byinnovating and adapting to the emerging realities. The life insurance industry is onewhere the need to constantly evolve and learn is imperative. SBI Life's successfuljourney bears testimony to our ability to innovate by using technology as a keydifferentiator in an intensely competitive market.

This technology focus has enabled us to transition to the remote workenvironment seamlessly with the lockdown announcement

SBI Life's successful journey bears testimony to our ability toinnovate using technology to cater to our varied pool of customers across every nook andcorner of the country. and provide uninterrupted services to our customers. In fact overthe years digitalisation has enabled us to deliver accuracy with speed while optimisingcosts thereby contributing to the bottom line. The premium collected from online channeland web aggregators grew 13% y-o-y. Various applications web-based solutions andArtificial Intelligence (AI) have enabled seamless processes and faster Turnaround Time(TAT) resulting in enriched customer experiences. SBI's YONO app is one such digitalplatform where SBI Life has covered more than 1.3 lakh lives. Furthermore these toolshave enabled us to address customer queries efficiently while helping the organisationunderstand the customer's needs and design products and solutions accordingly. Goingforward we will continue to invest in strengthening our digital capabilities to betterserve customers and further consolidate our industry leadership. I take this opportunityto thank all our stakeholders for their commitment trust and continuous support; ourvalued customers for entrusting us with their financial security needs and mostimportantly the SBI Life team for relentlessly striving to build a future-focusedexecution-oriented and value-accretive enterprise.

Warm regards
Rajnish Kumar
Chairman

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