Riding on low cost of distribution, SBI Life Insurance, the largest private life insurer, posted a net profit of Rs 276 crore for the financial year ended March 31, 2010. It had reported a net loss of Rs 26 crore in 2008-09, arising out of adverse market conditions.
Bancassurance, agency and corporate solutions have been the key distribution channels for the insurer. The agency channel contributed 45 per cent of the total premium, bancassurance contributed 33 per cent (growing by 59 per cent during the last financial year), and group corporate insurance contributed 22 per cent.
“Our focus is to achieve both growth and profitability objectives through catering to the life insurance needs of Indian population encompassing all socio-economical and geographical segments,” said Managing Director and Chief Executive Officer MN Rao.
The insurer recorded a 31 per cent increase in new business premium income to Rs 7,041 crore during the last financial year. Solvency ratio of the insurer stood at 2.2 per cent, while its share capital was Rs 1,000 crore at the quarter.
Unit-linked product inflows contributed almost 65 per cent of total premium collections during the last financial year.
