SBI Life Insurance, one of the leading Life insurers in India plans to follow the footsteps of ICICI Prudential Life Insurance and launch a IPO of about Rs. 2000 crore in the beginning of year 2017. State Bank of India (SBI), India’s largest bank, has received an approval to dilute up to 5% stake of SBI stake in SBI Life Insurance to a non-promoter entity. The Executive Committee of the Central Board (ECCB) at its meeting held on October 14, 2016 has approved for the same.
- SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardif, in which SBI owns 74% and remaining stake of 26% is held by BNP Paribas Cardif.
- Based on 5% stake sale, the issue size is estimated at R. 1950 crore.
- SBI Life Insurance ranks among one of the leading life insurers in India. For the year 2015-16, the company collected a total gross written premium (GWP) of Rs 15,825 crore, of which Rs 7,107 crore was new business premium and Rs 8,719 crore was renewal premium.
- SBI Life’s total assets under management (AUMs) grew by 12% to Rs79828 crore as on March 31, 2016 from Rs 71,339 crore in the previous year.
- SBI Life reported a five per cent growth in net profit at Rs 861 crore for the year ended March 31, 2016.
- SBI Life Insurance has a overall total market share of 5.1 per cent for 2015-16. The company share stands at 17.3% share in the private insurance market.