Mumbai: SBI Life Insurance Co has launched Horizon II, a unit linked pension product. The product offers Automatic Asset Allocation (AAA), an algorithm-based active investment allocation mechanism.
To ensure better returns to investors, the AAA automatically allocates higher exposure to equities for the initial years, followed by increasing exposure to debt and money markets as the pension plan nears maturity.
The company has also hiked its capital base by Rs75 crore to Rs500 crore to fulfil its needs for expanding its distribution network. The solvency margin is now 2.9 times higher than the liabilities, above the mandatory 1.5 times.
SBI Life's authorised capital limit is at Rs500 crore. In the current fiscal, the company registered a growth of 211 per cent in new business premium to Rs1,150 crore.
SBI Life was the first insurance company to post a profit of Rs2.02 crore at the end of last fiscal.
Unit linked insurance plans, which contributed just 25 per cent of the new business last year, now brings in around 60 per cent.