With a comfortable solvency margin of three per cent, SBI Life Insurance today said it did not require any immediate capital infusion.
"Solvency below two per cent is a trigger for capital infusion. We are comfortably placed at close to three per cent. Hence, there is no immediate need for capital infusion," SBI Life Managing Director and CEO Uday Sankar Roy told PTI.
SBI Life Insurance, country's second largest private insurer, had a paid-up capital of Rs 1,000 crore and an authorised capital of Rs 2,000 crore as on March 31, 2008.
The company did not infuse any fresh capital during 2008-09 and going by the rate of growth in business, the chances of infusing fresh capital in the first two quarters of 2009-10 seem remote, Roy said.
SBI Life, however, is preparing on its initial public offering and awaiting right market conditions to go for listing, he said.
Roy expects new premium income for the company to grow by 25-30 per cent in the next fiscal, slightly higher from around 25 per cent in the current fiscal.
"We are likely to complete the current fiscal with around 25 per cent growth in the new business premium. The next fiscal is also likely to record 25-30 per cent growth," Roy said.
