SBI Life FY'13 net up 12% at Rs 622 cr

MUMBAI: Private insurer SBI Life Insurance today posted 12 per cent growth in profit at Rs 622 crore for the financial year ending March 31, 2013.

The insurer's net stood at Rs 556 crore in FY12, the company said in a release issued here.

"Despite the continued tough environment, we were able to change the business mix and sustain a profitable growth primarily due to our brand strength, multi distribution model and high productivity of our retail channels," SBI Life Insurance Managing Director and CEO Atanu Sen said.

"We will further leverage our extensive bancassurance network, agency productivity and tap into opportunities emanating from new technology usage," Sen said.

SBI Life's regular new business premium increased by 19 per cent to Rs 2,618 crore during the 2012-13 from Rs 2,193 crore in 2011-12.

The share of single premium from the new business individual premium reduced to 16 per cent during the FY2012-13 from 41 per cent during the FY2011-12. The individual new business premium grew by 13.3 per cent to Rs 2,388 crore during FY'13 from Rs 2,108 crore during FY'12.

The Asset Under Management (AUM) went up by 11 per cent to Rs 51,912 crore from Rs 46,576 crore last fiscal.

SBI Life maintained a gross written premium (GWP) ratio of 11 per cent. The company has garnered a market share of 17 per cent amongst the other private players during the 2012-13 as per the latest report from the regulator Insurance Regulatory and Development Authority ( IRDA).

About 23 per cent of total policies of the insurer are from rural segment. Additionally, 68,714 lives covered by the company are from the underprivileged social sector, it said.

SBI Life Insurance is a joint venture between public sector lender State Bank of India and BNP Paribas Cardif, the insurance arm of Euro-Zone's leading Bank BNP Paribas.