SBI Life Insurance Company Ltd. is one of the leading life insurance companies in India. It is a joint venture between State Bank of India, which is India’s largest public sector bank, and the leading global insurance company BNP Paribas Cardiff. As of March 31, 2019, the company covered as many as 24 million lives.
Industry Overview
With India being the seventh-largest economy in the world and one of the nations with the highest youth population having a median age of 28 years, there is undoubtedly a rise in demand for life insurance. The demand is further propelled by the burgeoning share of the working population, swift urbanization, rising affluence and increased focus on financial inclusion. The Indian life insurance market is the tenth-largest life insurance market worldwide and the fifth largest in Asia with 4.6 trillion in total premium business. Despite this, it continues to be under-penetrated in comparison to countries like Japan, Thailand, and Korea. Moving forward, we can expect an increase in financial savings as a percentage of household savings along with an increase in the share of insurance as a percentage of financial savings to bolster growth in the life insurance space.
Financial Performance
On the standalone financial front, the company reported a growth of 5.56 percent YoY in total income from operations to 386.75 crore in Q1FY20 as against 366.39 crore in Q1FY19. The assets under management (AUMs) stood at 1,46,950 crore in Q1FY20 as compared to 1,41,020 crore in Q1FY19, marking a growth of 4.21 percent. Profit before interest, exceptional items and tax rose to 377.84 crore in Q1FY20 from 363.25 crore in Q1FY19, posting a YoY growth of 4.02 percent. Net profit for the period climbed 4.96 percent YoY to 371.90 crore in Q1FY20 from 354.31 crore in Q1FY19. EPS showcased a growth of 5.08 percent as it soared to 3.72 in Q1FY20 from 3.54 in Q1FY19. The debt-to-equity ratio came in at 77:23. However, 91 percent of its debt investments are in AAA and sovereign instruments.
This story is from the August 5, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 5, 2019 edition of Dalal Street Investment Journal.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures