SBI General Insurance profit rises 23% y-o-y in 2019-20

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Published: May 12, 2020 2:20 AM

SBI General Insurance saw its net profit increase 23.3% year-on-year to Rs 412 crore in 2019-20. The general insurer also saw rise in its gross written premium (GWP) and made underwriting profits in the last financial year.

The general insurer saw fall in its underwriting profits at Rs 61 crore in the last financial year compared to Rs 79 crore in 2018-19.

SBI General Insurance saw its net profit increase 23.3% year-on-year to Rs 412 crore in 2019-20. The general insurer also saw rise in its gross written premium (GWP) and made underwriting profits in the last financial year.

SBI General Insurance, which has a market share of 3.59%, saw its GWP at Rs 6,840 crore in 2019-20 compared to Rs 4,717 crore a year ago, a growth of 45%. Bancassurance has been traditionally a key strength, but SBI General Insurance has been able to maintain strong growth across other channels be it agency, OEM, broking, among others.

Pushan Mahapatra, MD and CEO at SBI General Insurance, said, “Growth has been evident across all lines of businesses. New tie-ups and improved business from existing tie-ups in motor, higher branch activations, better penetrations across the banca network, robust growth in corporate, SME and crop business has also contributed to the growth.”

The general insurer saw fall in its underwriting profits at Rs 61 crore in the last financial year compared to Rs 79 crore in 2018-19. SBI General Insurance reported a combined ratio of 98% in FY 19-20. The combined ratio is a measure of the profitability of an insurance company’s underwriting business.

A ratio below 100% usually indicates that the insurance company generates a margin in its insurance operations, while a ratio above 100% usually indicates that insurance company is paying out more money in claims and operating expenses than it is receiving from premiums.

The solvency ratio for SBI General Insurance stood at 2.27 times in the last fiscal. “We have been focusing on digital transformation in last 2 years both in terms of customer facing digital assets as well as internal processes. This has improved our overall customer experience in terms of claim processing and policy issuance. We are also scaling up our product bouquet with instant insurance solutions for the ease of consumers,” added Mahapatra.

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