New Delhi: SBI Life Insurance has entered into a tie-up with Bajaj Capital Insurance Broking Ltd an alliance that will enable the former to take advantage of the strong national retail presence of Bajaj Capital and strengthen its distribution channels. As part of the association, Bajaj Capital will use its strong pan-India network to distribute SBI Life's products.
The Bajaj Capital Group offers personalised investment advisory and financial planning services to individual investors, corporate houses, institutional investors, non-resident Indians (NRIs) and high networth clients.
SBI Life Insurance managing director US Roy said SBI Life Insurance, which plans to get listed next year, said the company would make capital infusion of about Rs. 600 crore in 2009-10 for its business expansion.
The paid-up capital of SBI Life, which has been making profits the last three years, stands at Rs. 1,000 crore.
Given the current trend of business growth, capital is not required till March 2009, he said, adding that the solvency ratio of the insurer is 2.2 per cent against the regulatory requirement of 1.5 per cent.
Quoting the chairman of State Bank of India, O. P. Bhatt, Roy said SBI Life would go public during the later half of 2009. However, the listing would depend on market conditions and other considerations, including the regulatory clearance.
Speaking on business growth, Roy said, SBI Life expects first year premium income to grow by 80 per cent during the current financial year.
The new business premium this year would go up to Rs 8,500 crore against Rs 4,800 crore earned last year, he said.