SBI Life Insurance Co. today reported a 19 per cent growth in profit to Rs 740 crore during the financial year ended March 31, driven mainly by operational efficiency.
The private insurer had posted a profit of Rs 622 crore during 2012-13, SBI Life said in a release issued here. "Despite tough economic environment, we were able to maintain a very healthy growth on various business parameters.
We have recently introduced more customer-friendly products and remain committed to bring new socio-economic and geographical segments within the insurance umbrella towards fulfilling overall goal of financial inclusion," SBI Life Insurance Managing Director and CEO Atanu Sen said. Operational efficiency has been the key driver of SBI Life's profitability, he added.
SBI Life's regular new business premium, which includes individual and group, increased 14.5 per cent to Rs 2,998 crore during the financial year 2013-14 from Rs 2,618 crore in FY 2012-13.
In line with its focus on improving strategic business mix, the private insurer's market share through individual business has increased to 16.8 per cent for FY14, from 13.8 per cent during the previous financial year. The company garnered a new business market share of 17.2 per cent.
Assets under management grew 12.7 per cent to Rs 58,480 crore as of March 31 from Rs 51,912 crore a year earlier.
SBI Life has a low expense ratio of 11.4 per cent. Leveraging wider reach achieved through its 762-branch network, SBI Life has systematically brought large rural areas under the insurance umbrella.
The private insurer sold 23.4 per cent of total policies in this segment during the financial year 2013-14.
Additionally, 79,463 lives out of total of 966,866 group lives covered by the company are from the underprivileged social sector.
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif.