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SBI Life Insurance, a 74:26 joint venture between the State Bank of India (SBI) and BNP Paribas' Cardiff, is looking at a 35 per cent growth in business during the current fiscal (FY-15).
According to Atanu Sen, Managing Director & CEO, SBI Life reported a gross premium of approximately ₹11,000 crore (including a first year premium of ₹5,500 crore).
“We are targeting a 35 per cent growth in business this year,” he told reporters on the sidelines of an Indian Chamber of Commerce (ICC) organised insurance summit.
In terms of profit, SBI Life reported ₹742 crore in FY-14; and is looking at over ₹800 crore in the current fiscal.
Group and individual life insurance account for its business.
The company is banking on a 40 per cent growth in policy renewals to help achieve the year's business.
Stake Sale
According to Sen, there are however, no immediate plans of any stake dilution in favour of BNP Paribas.
The Centre has proposed raising the FDI limit in insurance to 49 per cent, from the existing 49 per cent, in this year’s Budget.
“We have not had any formal discussion with them (BNP Paribas) yet. In the current context we will not require fresh capital infusion over the next three to four year period,” he added.
The “first right of refusal” – in case SBI wants to dilute its stake – lies with BNP Paribas.
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