SBI life insurance is a company formed by the largest lender in India, State Bank of India (SBI, and BNP Paribas, French based multinational banking company.
Market capitalisation of SBI life insurance
The market capitalisation of SBI life insurance is valued at roughly Rs.67,700 crore.
Company’s wealth and recent performance
Q1 FY 2018-19
- For the quarter ended on June 30, 2018, SBI Life Insurance Limited reported its new business premium to be worth Rs.20.8 billion - a growth of 15.3% y-o-y. The insurer reported its renewal premium to be worth Rs.26.8 billion for the June quarter, as against Rs.19.9 billion for the same period a year ago.
- The gross written premium grew by 25.6% y-o-y to Rs.47.6 billion. For the quarter, the value of new business stood at Rs.2.2 billion.
- Considering the profitability of the company, its profit after tax for the June quarter was reported to be at Rs.3.5 billion in comparison to a PAT of Rs.3.1 billion reported for the same quarter of the previous year.
- For the year ended on March 31, 2018, SBI Life Insurance Company Limited reported its net premium income to be Rs.251.6 billion - a growth of 20.7% y-o-y from Rs.208.5 billion.
- The premium renewal segment registered a growth of 32.3% y-o-y to Rs.143.9 billion. The company’s profit after tax grew by 20.5% y-o-y to Rs.11.5 billion while its assets under management (AuM) recorded a growth of 19% over the year. The AuM for the year stood at Rs.1,162.6 billion.
- In the same period, the company’s net worth also grew from Rs.55.5 billion as on March 31, 2017 to Rs.65.3 billion as on March 31, 2018.
- Considering the company’s profitability, the insurer reported its profit after tax to be Rs.11.5 billion in comparison to Rs.9.5 billion reported for the previous fiscal year.
- The value of new business grew by 34% y-o-y with the final figure standing at Rs.13.9 billion for the year. The company’s earnings per share (EPS) grew from Rs.9.55 to Rs.11.50 y-o-y.
Q3 FY 2017-18
- The Annual Premium Equivalent (APE) of SBI life insurance rose to Rs.58.5 billion in Q3 of FY18, a 39% rise when compared to the APE of Q3 of FY17 when it stood at Rs.42 billion
- The Profit After Tax (PAT) of the company rose by 24% to over Rs.7.5 billion in Q3 of FY18. During the corresponding period in FY17, the PAT stood at a little over Rs.6 billion
- The renewal premium of the company too saw an increment that amounted to Rs.88 billion approximately. Roughly a 32% increase when compared to last year
- The business Individual Rated Premium (IRP) rose by 43% to roughly Rs.53 billion, as opposed to Rs.37 billion when compared to the corresponding period of the previous year
- The operating expense of the company reduced to a little over 7.5% in Q3 of FY18, which stood at 8.9% during the corresponding period of FY17
- The private market share IRP also rose to 23%
- The overall market share on IRP rose to 13%
SBI life insurance stock returns 2017
- SBI life insurance listed its stock in the beginning of October 2017 where is stood at roughly Rs.735
- It saw a decline in value by November 2017 when it stood at roughly Rs.660
- The price more or less stagnated throughout the month and started December at a price of roughly Rs.658
- The stock prices picked up during the month of December and stood at almost Rs.695 by the end of 2017
SBI life insurance stock returns 2018
- The stock prices of SBI life insurance, in the beginning of 2018, stood at roughly Rs.695
- The month of January had its ups and downs, resulting in a slight decline of stock prices at the beginning of February of 2018, where the stock price stood at roughly Rs.670
- The beginning of March too saw a slight decline in stock prices where it stood at roughly Rs.637
- In early April, the company announced an interim dividend of 20%. Around that time, the SBI Life Insurance stock price was varying at levels above Rs.680. The dividend announcement was soon followed by a sharp rise in the share price which took the well into the Rs.700 region.
- In late April, the SBI Life Insurance shares hit their 52-week high at Rs.774.60. However, this significant rise was almost immediately followed by a sharp fall in the prices over the course of May. The scrip lost more than 17% in this period to reach its previous levels at Rs.650.
- The prices rose once again in June to cross the Rs.700 mark, although the shares failed to find a steady heading at those levels. Consequently, the stock price of SBI Life Insurance went down once again to enter the Rs.600 region. In late July, the scrip reached its 52-week low at Rs.628.
- However, in the final week of the month, the prices rose once again to cross the Rs.680 mark. Through most of August and early September, the shares traded hands at levels varying from Rs.650 - Rs.670. As of September 10, the shares were seen trading at levels close to Rs.675.
Why should you invest in SBI life insurance?
- SBI life insurance is the largest private insurer in the country after ICICI prudential
- The company registered a massive year on year profit growth
- The company is valued at over Rs.50 crore
- SBI life insurance is one of the faster growing insurance companies in the market
- SBI life insurance has excelled in the financial front as well, improving in almost all financial aspects when compared to last year
- Among private insurer, SBI life insurance has a market share of roughly 20%, making it one of the biggest private insurer in India
- The insurance market in general is expected to grow by 20 – 25% in the coming few years
SBI life insurance is one of the largest private insurers in the country. It is an amalgamation between two banking giants, State Bank of India (SBI), and BNP Paribas, a French multinational bank. BNP Paribas owns 26% of the capital, while SBI owns 70.1% of the capital. The remaining capital is divided amongst their investors MacRitchie Investments Pte. Ltd. and Value Line Pte. Ltd. The company has an authorised capital of around Rs.20 billion, and paid up capital of around Rs.10 billion. One of its most recognisable accolades is that the company is listed in the ‘Fortune Global 500 list of the world’s biggest corporations’.
Mr. Rajnish Kumar – Chairman
Mr. Rajnish Kumar is the chairman of SBI life insurance and has been with State Bank of India for over 30 years. Undoubtedly one of the most prominent individuals in the company, he initially joined the company as a Probationary officer (P.O) back in 1980. He has immense experience in handling large financial projects, credits, retail banking, and foreign exchange. Prior to his position as chairman, Mr. Rajnish was a Managing Director (Compliance and risk, and National Banking group) of SBI.
Mr. Dinesh Khara – Director
Mr. Dinesh Khara is the Non-Executive Director Of State Bank of India life insurance. He graduated in the field of business administration and attained his post-graduation in the field of Commerce. He is also a Certified Associate of the Indian Institute of Bankers (C.A.I.I.B) and has over three decades of experience in commercial banking like retail credit, branch management, banking operations, etc. Currently he is the director of 9 subsidiaries of SBI that are non-banking in nature. Prior to this, he was Managing Director (MD) & Chief Executive Officer (CEO) of SBI Funds Management Pvt. Ltd.
Mr. Sanjeev Nautiyal - Managing Director (MD) & Chief Executive Officer (CEO)
Mr. Sanjeev Nautiyal is the Managing Director (MD) & Chief Executive Officer (CEO) of SBI life insurance. He too began his career as a Probationary Officer back in 1985, in Lucknow. Graduating in the field of arts and attaining a Masters in Business Administration, Mr. Sanjeev later went on to become a Certified Associate of the Indian Institute of Bankers (C.A.I.I.B). He has been a part of several vital assignments within SBI in the fields of Human resources, Credit, international banking, etc. Prior to his role as MD and CEO, Mr. Sanjeev was the Chief General Manager of SBI Ahmedabad.
Ms. Joji Sekhon Gill - Independent Director
Ms. Joji Sekhon Gill is an Independent Director of SBI life insurance. After having graduated in the field of science and economics, she went on to obtain her Masters from Punjab University in Personnel Management and Industrial Relations. She is renowned in the field of banking and has over 25 years of work experience. Mr. Joji had worked in three continents and was the Director of HR (Human Resources) for the tech giant, Microsoft India. Her role in Microsoft India was to develop people strategies and synergise them with all the six businesses that Microsoft had possessed in India. Previously in charge of developing the talent strategy all across South Asia, Ms. Joji is now the regional director of Asia pacific, covering countries such as India, Taiwan, Korea, Japan, New Zealand, Australia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Indonesia, and China.
SBI life insurance was incorporated in Mumbai back in 2000 under the Companies Act, 1956. The company began to commence its business in 200, and by 2006 it was the only life insurance company in India that declared a profit within 6 years of incorporation. By 2011, the company had expanded its network to over 500 branches, growing at a rapid pace. SBI life insurance grossed a profit after tax of over Rs.5 billion, declaring maiden dividends to its shareholders. The company has since performed excellently, and in 2017, they decided to go public. Currently, SBI life insurance has a renewal premium of well over Rs.100 billion, and a gross written premium of way over Rs.200 billion.
SBI life insurance stocks and indices
SBI life insurance stocks are listed on NSE, BSE, S&P BSE, etc.
M.V. Road & Western Express Highway Junction,
Andheri (East), Mumbai - 400 069
Phone - 022-6191 0000
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