SBI Life Insurance reports a whopping 33% growth in net profit
Mumbai: BNP Paribas Assurance, the JV partner in SBI Life Insurance, is willing to increase its stake to 49% according to market sources. However, it could take a long time to get it rolling as the proposal to increase FDI investment from 26% to 49% is lying with the parliamentary standing committee for the last six years.
SBI life reported a top line growth of 7 % (Rs 7,572 crore) in the new business premium collection in the last fiscal while the net profits grew by 33% (Rs 366 crore). The overall premium collection grew by 28% (Rs 12,912 crore) over the last financial. The AUM also increased by 40% (Rs 40, 163 crore from Rs 28, 703 crore) in the last fiscal.
Commenting on the performance, Mr. M N Rao, MD & CEO, SBI Life Insurance said "Our rapid adaptation to the new external environment while maintaining emphasis on customer centricity and operational excellence has resulted in profitable growth."
The company is planning to leverage its strength in growing the bancassurance channel of distribution by strengthening the relationship with SBI. Bancassurance channel of distribution witnessed a growth of 44% and contributed to over 37% of the total premium collection and group corporate contributed to 18% of total premium in the last fiscal. The agency channel contributed 42% growth in the total premium business.