Mumbai: SBI Life Insurance Company Ltd has made provisions of Rs 150 crore for mark to market losses on its investment portfolio. The provisions have meant that the company has made a net loss in the first quarter.Mr U.S. Roy, Managing Director and CEO, said, “An IRDA directive in March had asked companies to make provisions on diminution in assets but there has been no formula prescribed. We are following the method used by banks and are taking a conservative approach by making such prudential provisions,” he said.
The company, which has been profitable in the past two years has not disclosed the net loss made in the first quarter. SBI Life’s assets under management stand at Rs 11,727 crore. Mr Roy said that around Rs 4,000 crore was invested in equity and the depreciation was seen mainly in this portfolio.
SBI Life has, however, shown a sharp growth in new business premium. The new business annualised premium equivalent (APE), that takes single premium income at 10 per cent, has grown by 241 per cent to Rs 972 crore.
The contribution of ULIPs to the company’s portfolio has dropped to 54 per cent, from 70 per cent in March. Mr Roy said the company has been strategically pushing traditional products.
Source: The Hindu Business Line
No comments:
Post a Comment