SBI Life Insurance has posted a record profit of Rs. 622 crore, for the financial year ended on 31st March, 2013, an increase of 12% over the last financial year 2011-12. According to a press release, operational efficiency has been the key driver of SBI Life’s profitability. The company claims number one position amongst private life insurers in new business premium (NBP) for the financial year 2012-13.
Contrary to the continued business decline faced by the life insurance industry, SBI Life’s regular new business premium increased by 19%, to Rs. 2,618 crore during the FY 2012-13 from Rs. 2,193 crore in FY 2011 -12. In line with its focus on improving strategic business mix, the share of single premium from the new business individual premium reduced to 16%, during the FY 2012-13 from 41% during the FY 2011-12. Consequently, the individual new business premium annual premium equivalent (APE) grew by 13.3% to Rs. 2,388 crore during FY 2012-13 from Rs. 2,108 crore during FY 2011-12. The AUM jumped by 11% to Rs. 51, 912.
Mr. Atanu Sen, MD & CEO, SBI Life Insurance said “Despite the continued tough environment, we were able to change the business mix and sustain a profitable growth primarily due to our brand strength, multi distribution model and high productivity of our retail channels. We will further leverage our extensive bancassurance network, agency productivity and tap into opportunities emanating from new technology usage.”
23% of total policies of SBI Life are from rural segment which testifies the company’s approach towards life insurance inclusion. Additionally, 68,714 lives covered by the company are from the underprivileged social sector, says the press release.