Sbi Life – Case Study
The study conducted highlights on the financial performance of SBI as a player in the life insurance industry in India.
It was amongst the first to start of with the bank backed insurance distribution model thus gaining the highest penetration in the Indian life insurance industry market. SBI has been a house hold name and hence cashing on it has bough tremendous business to the company vis a vis the insurance sector. The company has seen tremendous growth and has been regarded as one of the foremost models to be adopted for business distribution in the country to be followed up by the other insurers.
It has not only as a company concentrated on the cost efficiency, performance stability and the profitability but has also carved a niche for itself in the bancassurance model in India.
With garnering highest growth this is one stable company to look out for in case of an IPO as it has completed its work in the industry for 10 whole years. Though the company is still hesitant to come out with such a disclosure it plans to maintain its focus on the flexibility of giving out plans that can not only harness the present population but also grab the highest market share just next to the public giant LIC.
FACTS
Founded – 29 th March 2001
Headquarter – Mumbai
MD & CEO – Mr. Mahadev Nagendra Rao
Joint Venture – SBI & BNP Paribas Assurance
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.
Along with its 5 Associate Banks, State Bank Group has the unrivalled strength of over 18,000 branches across the country, arguably the largest in the world.
BNP Paribas Cardif is the life and property & casualty insurance arm of BNP Paribas, one of the strongest banks in the world. BNP Paribas Group, having presence in more than 80 countries ranks highly in Retail Banking, Investment Solutions and Corporate & Investment Banking. BNP Paribas Cardif is one of the world leaders in creditor insurance and its life and non-life insurance units have received an AA rating from Standard & Poor’s.
SBI Life has a unique multi-distribution model encompassing vibrant Bancassurance, Retail Agency, Institutional Alliance and Corporate Solutions distribution channels.
SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans. SBI’s access to over 100 million accounts across