SBI Life Insurance, the leading private life insurer, announced an impressive all-round performance during the first nine months of the FY 09-10. Growing by 32% in total premium collections to Rs 6,087 crore, the company posted a robust net profit of Rs 199 crs. The New Business Premium grew by 19% to Rs. 4,392 crore during the period. During the third quarter, ending December 2009, SBI Life Insurance recorded a profit of Rs. 82 Crore. Reflecting its superior efficiency in it business operations, the company maintains the lowest “expense to GWP (Gross Written Premium)” ratio in industry of 7.99%
Commenting on the company’s performance Mr. M. N. Rao MD & CEO, SBI Life Insurance said, “Creating value for our customers through leveraging of wide – spread distribution network, trusted brand equity and customer-centric offerings, we continue to focus on holistic development of business. We remain committed to reaching life insurance solutions to customers, across socio-economic and geographical segments, enabling them for a better tomorrow.”
The New Business Annualised Premium Equivalent (APE), a standard measure in the Industry to measure performance, has grown by 24.75% to Rs.3,953 crore. The assets under management grew by 111.5%, over the corresponding period last year, to Rs. 24,589 crore.
The company has launched a suite of 5 Unit Linked plans, in line with the recent customer-friendly move by IRDA to cap charges on ULIPs, under its trusted schemes -- SBI Life- Unit Plus III Pension, SBI Life -Unit Plus III, SBI Life- Horizon III, SBI Life-Maha Anand II and SBI Life -Smart ULIP (Series II). These newly launched ULIPs are equipped with enhanced features, benefits of higher protection and investment options and a wide range of riders offering additional protection. Some of the innovative enhancements in these ULIPs include “Guaranteed Additions” and introduction of riders “Criti Care 13” and “Income Sustainer Rider”. Criti Care 13 covers for 13 major illness and “Income Sustainer Rider” which offers life assured or nominee the benefit of monthly income in case of an unfortunate event.
The company has introduced two new funds namely Top 300 Fund, capturing long term capital appreciation opportunities by investing in stocks of top 300 companies by market capitalization, and Index Fund, aiming to provide returns aligned to NSE S&P CNX Nifty index.
In compliance with IRDA guidelines, all unit-linked products launched by SBI Life Insurance will have a standard charge structure not exceeding 3% for ULIPs up to 10 year terms, and 2.25% for ULIPs over 10 year terms. The Fund Management Charges (FMC) will have maximum upper limit of 1.35% p.a. The reduction in FMC will benefit both, the existing and new customers.
The company would shortly be launching a bouquet of uniquely-featured ULIPs in the Child, Pension and High Networth Individual (HNI) category.
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Earlier during this financial year, the company achieved the unique distinction of globally topping the prestigious MDRT 2009 for having maximum number of MDRT members across the globe. Managing a portfolio of over 14 million lives, the company maintains lead position amongst private players in terms of number of lives covered. In new business premium, continuing to lead, SBI Life has a market share of 18.79 % amongst private players and a total market share of 6.5% as per the latest IRDA reports.
· Total Premium Collection grows by 32%
· Asset Under Management increases by 111.5%