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SBI Life ends three straight years of profit

SBI Life ends three straight years of profit
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First Published: Tue, Apr 28 2009. 10 30 PM IST
Updated: Tue, Apr 28 2009. 10 30 PM IST
Mumbai: SBI Life Insurance Co. Ltd has ended three straight years of profit, recording mark-to-market losses of Rs24 crore in the year to 31 March.
Mark-to-market is an accounting practice of assigning a value to a position held in a financial instrument based on the current market price for that instrument.
The insurer had clocked Rs34 crore in profits in the previous fiscal.
India’s second largest private insurer, which has been expanding fast, blames volatile equity markets for its poor performance. “The expansion has taken it’s toll. With market turmoil, we’ve had to provide for mark-to-market impairment of some of the equity assets. Because of that, we are not in profit this year,” said chief executive officer and managing director U.S. Roy.
It now plans to go slow on expansion and hiring.
However, the company has recorded 12% growth in new business premium, touching Rs5,386 crore, and 43% growth in assets under management to Rs14,964 crore.
cnbctv18@livemint.com
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First Published: Tue, Apr 28 2009. 10 30 PM IST