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At Rs 46,000 Crore, SBI Life Insurance Is India’s Highest-Valued Private Insurer

SBI Life valued higher than ICICI Prudential, HDFC Life.



Arundhati Bhattacharya speaks at the Annual Bankers Conference in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)
Arundhati Bhattacharya speaks at the Annual Bankers Conference in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

SBI Life Insurance Company Ltd. has been valued at Rs 46,000 crore as part of a deal in which parent company State Bank of India (SBI) will sell a 3.9 percent stake in the insurance arm to private equity firms KKR and Temasek, the country’s largest lender said in a media statement on Friday.

The valuation pegs SBI Life higher than newly-listed ICICI Prudential Life Insurance, which had an enterprise value of Rs 42,258.1 crore at the end of September, according to Bloomberg data. SBI’s insurance arm is also valued marginally higher than HDFC Standard Life Insurance, which was valued at around Rs 44,900 crore in its deal to merge with Max Life Insurance and Max Financial Services.

The merged entity of HDFC Standard Life Insurance and Max Life Insurance, which is yet to be formed, is however valued much higher at around Rs 65,000 crore, according to BloombergQuint’s calculations.

In an investor presentation on its website, HDFC Ltd. has said the value attributable to HDFC Life in the merged entity is 69 percent, while Max Life accounts for the remaining 31 percent.

SBI, after the stake sale, will hold a 70.1 percent stake in SBI Life. The other shareholder, BNP Paribas Cardif, will continue to hold a 26 percent stake.

SBI stands to gain Rs 1,794 crore through the sale of stake in SBI Life to KKR and Temasek, the statement said.