SBI General Insurance posted a 28.4% increase in its net profit to Rs 104 crore for the quarter ended September, largely due to improved underwriting profits across segments.
SBI General Insurance posted a 28.4% increase in its net profit to Rs 104 crore for the quarter ended September, largely due to improved underwriting profits across segments. The general insurance arm of State Bank of India (SBI) posted an underwriting profit of Rs 30 crore, against a loss of Rs 14 crore in previous financial year. SBI General Insurance has reported a 64% increase in net profit at Rs 217 crore for the six-month period ended September, against Rs 132 crore in the corresponding period in 2017-18.
The company recorded a sustainable underwriting profit of Rs 37 crore in H1FY19 compared to an underwriting loss of Rs 60 crore in H1FY18. The gross written premium (GWP) also witnessed a significant growth of 30%, from Rs 1,593 crore in H1FY18 to Rs 2,067 crore in H1FY19. The solvency ratio for H118-19 stands at 2.46, whereas the combined ratio is 96.8%.
CFO Rikhil K Shah said, “SBI General has consistently delivered commendable growth in operations in the first half of FY19. We firmly believe that the true strength of an insurance player lies in securing underwriting profits.” He added that expect motor insurance, all other categories such as health, personal accident and fire among others saw underwriting profits. Investment income of the company for the first six months of the current financial year stood at Rs 218 crore, against Rs 192 crore in last financial year.
Data from Irdai showed SBI General Insurance’s market share till September stood at 2.52%.