SBI Life Insurance Ltd – India’s largest private life insurer, in terms of New Business Premium generated in each fiscal year since Fiscal 2010 is planning to raise INR 8400 crores via initial public offer (IPO).
SBI Life Insurance Ltd – Company Profile
Incorporated in the year 2000, SBI Life Insurance Ltd is India based private Life Insurer Company. SBI Life Insurance Ltd is a joint venture between the State Bank of India (India’s largest commercial bank) and BNPPC (an insurance subsidiary of BNP Paribas Cardif). SBI owns 70.1% of the total capital in SBI Life while BNP Paribas Cardif owns 26% of the total capital in SBI Life.
Working Area
- Product Portfolio – SBI Life has the product a portfolio of 37 individual and group products, including a range of protection and savings products to address the insurance needs of various customer segments.
- Distribution Network – The Company has developed a multi-channel distribution network comprising bank branches of SBI and its associated banks, individual agent network (93,849 agents) and other distribution channels including direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries.
- Market Share – The Company has also increased its market share of New Business Premium generated among private life insurers in India, from 15.87% in Fiscal 2015 to 20.04% in Fiscal 2017.
- Record Break Business Premium Generated – Between Fiscal 2015 and Fiscal 2017, our New Business Premium generated increased at a CAGR of 35.45%, which is the highest among the top five private life insurers (in terms of total premium in Fiscal 2017) in India.
Key Milestones
List of key milestones of SBI Life Insurance Company Ltd.
Company Promoters
The Promoters of the Company are State Bank of India and BNP Paribas Cardif.
IPO Opening / Closing Dates & Listing
IPO Details – Issue Price, Minimum Bid and Other
Financial Performance
Revenues
The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 14975.53 crore in FY 2013 to INR 30277.51 crore for the period ended FY 2017.
Profits
Though the company has shown superb growth in revenue, the company has also registered impressive profits in these 5 years. Starting from INR 630.11 crore of profits in FY2013, the company’s earnings improved to INR 954.65 crore for the period ended FY 2017.
CONCLUSION –
Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on SBI Life Insurance IPO for the time being.
Link – ICICI LOMBARD GENERAL INSURANCE LIMITED IPO.
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