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ShareKolkata: SBI Life Insurance may have to double its new business premium in the second half to reach its targeted growth of 25% during the fiscal.
It will have to rake in almost Rs4,000 crore of new business premium in the second half of the year. In the first half of the year, the company garnered a new business premium of Rs2,391 crore.
The insurer has posted a net profit of Rs116 crore in the first six months of the current fiscal.
The total premium of the company in the first half grew by 17% to Rs 3,407 crore with an over 70% growth in renewal income.
While it is true that life insurance business picks up the most towards the end of the financial year, MN Rao, managing director and CEO, SBI Life told DNA Money, "It is true that we have to exert ourselves a little bit more in the remaining months of the year. We expect bancassurance to do well during the year. We are looking at a 25% growth."
"With an upturn in new business riding on the economic revival, our profits would also be good," Rao said.
Explaining the performance of the company during April-September, Rao said that the premium from the bancassurance segment increased by Rs100 crore to Rs800 crore during the April-September period over the corresponding period of the previous year.
Retail agency business income registered a decline of 5% at Rs840 crore during the period. The company suffered almost 10% decline in its group business to at Rs 825 crore.
The company is in the process of filing its modified range of unit-linked products with the Insurance Regulatory & Development Authority (Irda). It is also weighing health insurance plans in the year.
