Fiscal year 2017 (FY17) was phenomenal for SBI Life Insurance Co. Ltd on most metrics as it reported a sharp growth in new business premium, reduction in expense ratio and an improvement in persistency ratios.
The growth in business has continued in the first quarter of the current fiscal year as well and therefore the timing of the initial public offering (IPO) couldn’t have been better for the promoters.
Promoters State Bank of India (SBI) and BNP Paribas Cardiff seek to garner Rs5,600 crore and Rs2,400 crore, respectively, from the IPO, the price band of which is set at Rs685-700 apiece. At this band, the life insurer will be valued close to Rs70,000 crore.
