What ails India’s Private Sector Insurance? Here’s a winner – SBI Life

To what ails the sector, firstly we need all players talking the same names when they report results. SBI Life looking like a juggernaut with Gross Written Premiums of $3.23 billion when LIC Net premiums are overall more than twice the entire industry, making comparisons meaningless.

Even then, SBI Life performance historically has been credible and if they keep losing share of premiums in this market they will still not face profitability challenges with this book good for probably 5-10 years. In their early years they were the proponents of single premium products and thus could not have said the same about themselves. Their total book now exceeds $10 billion adding $3 billion in this last year, $1.4 bln in renewals with a persistency of nearly 70%

The profits of $89 million for the year are still much to write home about where industry no. 7 HDFC Life (profiled earlier) is still reporting $15-20 million in losses after 10 years of operations

SBI Life’s New Business Premiums amounted to $1.75 biliion, a similar tick almost to the hundreds for the top 5 in the industry. Of course without ULIPs Bajaj will drop out from the mix for some time and MNYL may just be back but they are probably doing half a billion and alongwith bank JVs hoping for a bigger corporate partner bang

SBI Life’s agency system contributes only 42% of the business, but according to the company results release it has been receiving awards from networks (Bloomberg UTV and NDTV profit) for best life insurer 

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