SBI sells 3.9 % per cent stake in SBI Life Insurance

Country’s largest commercial bank, SBI sold 3.9 per cent stake in Life Insurance arm to affiliates of KKR and Temasek that picked up 1.95 per cent stake each.

State Bank of India has informed the exchanges that the bank's board at a meeting held on Friday approved sale of 3.9 per cent stake in SBI Life Insurance Company at a price of Rs 460 per share, subject to all regulatory approvals. SBI in total holds a stake of 74 per cent in SBI Life Insurance.

Post the stake sale, company will consider IPO in 2017-18, as per the company’s management. The valuation of the business stands at Rs 46,000 crore, a part of which is being offloaded to a non-promoter. The stake sale might be construed as a test to see the market response given the insurance listing of other competitors.

On the financial front, SBI Life Insurance’s new premium income has increased 50 per cent in H1FY17, as compared to the same period in the previous financial year. The company’s renewal premium income also has risen 30 per cent in H1FY17 on a yearly basis. It is also expecting about 40 per cent growth in total premium income for FY17.

Insurance space in the country remained a hotbed of activity since FDI limit has been increased to 49 per cent.
Shares of SBI closed at Rs 266.60, up 2.6 per cent on NSE.