REPORT ON SECTORAL

ANALYSIS ON
CAPITALISATION,
LEVERAGE AND DIVIDEND
POLICY

Adit Bohra 2120889

Gourish Jain 2120883
Meet Raisinghani 2120845
ABOUT THE
INDUSTRY
​India’s Insurance industry is one of the premium sectors experiencing upward growth. This
upward growth of the insurance industry can be attributed to growing incomes and
increasing awareness in the industry. India is the fifth largest life insurance market in the
world's emerging insurance markets, growing at a rate of 32-34% each year. In recent
years the industry has been experiencing fierce competition among its peers which has led
to new and innovative products within the industry. Foreign Direct Investment (FDI) in the
industry under the automatic method is allowed up to 26% and licensing of the industry is
monitored by the insurance regulator the Insurance Regulatory and Development
Authority of India (IRDAI).
 SBI LIFE INSURANCE

SBI Life Insurance is one of the most trusted life insurance companies in India, was
incorporated in October 2000 and is registered with the Insurance Regulatory and
Development Authority of India (IRDAI) in March 2001.
Driven by ‘Customer-First’ approach, SBI Life places great emphasis on maintaining
world class operating efficiency and providing hassle-free claim settlement experience
to its customers by following high ethical standards of service. Additionally, SBI Life
is committed to enhance digital experiences for its customers, distributors and
employees alike.
 CAPITAL STRUCTURE

Capital structure is the particular combination of debt and equity used by a

company to finance its overall operations and growth. Equity capital arises
from ownership shares in a company and claims to its future cash flows and
profits. Debt comes in the form of bond issues or loans, while equity may
come in the form of common stock, preferred stock, or retained earnings.
Short-term debt is also considered to be part of the capital structure.
 LEVERAGES 5

• Leveraged investing is a technique that seeks higher investment profits by using borrowed money. These profits
come from the difference between the investment returns on the borrowed capital and the cost of the associated
interest. Leveraged investing exposes an investor to higher risk.
 DIVIDEND POLICY
6

• Dividend policy is the guideline for dividend distribution drafted by the board of directors of the company. The policy includes parameters
for sharing profits with the shareholders. It also includes how often and in which form the dividends are to be distributed.

• SBI Life Insurance Company Ltd. has declared 4 dividends since April 3, 2018.In the past 12 months, SBI Life Insurance Company Ltd. has
declared an equity dividend amounting to Rs 2.00 per shares. At the current share price of Rs 1226.30, this results in a dividend yield of
0.16%
 FUTURE OUTLOOK
In its recent initiatives ,the company has
launched new pension product with added
features for better customer experience.
The broaden the reach SBI LIFE
INSURANCE has tied up with Indian post
payments bank limited which will help it
to tap unserved markets. Total 9.3 lakh
policies were issued as of September
2022.Focus on agent addition to pedal
premium growth .The company has offset
the impact of the pandemic on business
growth to a large extent. Indians bought
life insurance policies with the pandemic
making them even more willing buyers.
SBI Life’s retail new business premium
growth showed a 36.5% sequential jump,
offsetting the loss of business of the first
quarter
THANK YOU
Mirjam Nilsson​
mirjam@contoso.com
www.contoso.com