The Insurance Regulatory and Development Authority of India (IRDAI) on 2 June 2023 ordered that the policyholder related assets and liabilities of SILIC be transferred to SBI Life. This is not a merger of the two companies, but only a transfer of assets and liabilities. The transferred assets and liabilities are less than 0.5% of the balance sheet of SBI Life.
SBI Life will take necessary actions to give effect to the order. The integration process is underway, and while it may take some time, policyholders can reach out to SBI Life Insurance for assistance.
SILIC was granted a Certificate of Registration in 2004 to transact the business of life insurance. In 2017, IRDAI appointed an Administrator to manage the business of SILIC due to certain serious issues on the financial propriety and governance aspects of the insurer. SILIC was also not allowed to underwrite new business.
SILIC has failed to comply with directions of the Authority and take any affirmative steps to protect the interests of its policyholders.
After due consideration of all circumstances, IRDAI in its meeting held on 2 June 2023 decided to transfer the life insurance business of SILIC to another suitable life insurer with immediate effect.
SBI Life Insurance Company is one of the leading life Insurance companies in India. It has a strong distribution network of 992 offices, 20,787 employees, a large and productive network of about 208,774 agents, 63 corporate agents and 14 bancassurance partners with more than 39,000 partner branches, 129 brokers and other insurance marketing firms.
The life insurer's net profit increased 15.6% to Rs 776.85 crore on 6.43% rise in total income to Rs 22,805.40 crore in Q4 FY23 over Q4 FY22.
Shares of SBI Life fell 0.15% to Rs 1205.65 on Friday, 2 June 2023.
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