SBI General Insurance reported a net profit of Rs 113 crore for the first quarter of current fiscal, over two-fold rise from the previous year. The rise in profit for the general insurer was largely due to the lower combined ratio and underwriting profits.
Rikhil Shah, CFO, SBI General Insurance said, “We are one of the youngest players in the sector and have seen a steady but impressive growth since commencing operations. We have witnessed a growth of 52% in Q1 FY19 against an industry growth of 12%. We firmly believe that the true strength of an insurance player lies in securing underwriting profits and we have begun this financial year with an underwriting profit of Rs 7 crore”.
He added that, the consistent growth in our business is in line with our aim to be recognised as a customer-oriented organisation. Overall, we are in an exciting phase of the business and look forward to build the momentum.
The non life insurer had registered a net profit of `50 crore in the April-June period of last financial year. SBI General saw its gross written premium at Rs 1,011 crore during the first quarter of current fiscal which grew by 51% from the year-ago period. SBI General also saw underwriting profits of Rs 7 crore in first quarter as against underwriting loss of `46 crore in previous financial year.
While combined ratio improved in the last quarter of current fiscal to 99% compared to 111% in Q1 of 2017-18. According to the data from General Insurance Council, SBI General has seen premiums of Rs 239.04 crore in Motor segment, 204.41 crore in fire segment and all other miscellaneous at Rs 352.56 crore for the period upto June 2018.