Financial Performance of SBI Life Insurance Company and Shriram Life Insurance Company: A Comparative Study

One of the significant changes that the life insurance companies in India have experienced in the current millennium is the introduction of financial sector reforms coupled with liberalization and globalization which have practically made the market condition precarious. With the liberalization of the economy, more and more insurance companies have entered into the market and thereby eroding the market share of all the companies in operation. The Insurance Regulatory and Development Authority (IRDA) was set up as a regulatory and monitoring body to overview the tasks of the insurance companies. Since then there has been a galloping inflow of private companies in the Indian Insurance industry and thus infused tremendous competition in this sector. This has posed a challenges for each and every life insurance companies, irrespective of their size, to survive in the market as well as to maintain a sound financial position. The paper makes an attempt to compare the financial performance of SBI Life Insurance Company and Shriram Life Insurance Company from 2008-2009 to 2013-2014 on the basis of certain parameters relating to profitability, solvency and liquidity