Transfer of Sahara Life biz unlikely to impact SBI Life's balance sheet
Transfer of liabilities of around two lakh policies along with assets of Sahara Life is unlikely to have a major impact on SBI Life Insurance as the business of the former is very small, an expert said.
The total number of policies being transferred is only a small percentage of SBI Life's total policies, a company official said.
At the same time, capital related to policies based on actuarial calculation is being transferred to SBI Life, an insurance industry expert said.
Besides, the expert said that the new policyholders may provide an opportunity for SBI Life to offer their product depending on their age profile.
There may not be a big impact on SBI Life, the expert said, adding, it is also a test case for the industry since it was opened for private players in 2000.
On Friday, regulator Irdai directed SBI Life Insurance to takeover the policy liabilities of around two lakh policies along with assets of stressed Sahara India Life Insurance Co Ltd (SILIC).
The decision was tak