SBI General Insurance reported net profit growth of about 150% in 2017-18 to Rs 3.96 billion.
Underwriting profit was Rs 320 million, against a loss in this segment of almost Rs 2 billion in FY17.
Pushan Mahapatra, managing director, added: “We have also recorded a lower loss ratio and minimised our operating expenses further.”
Gross written premium (GWP) revenue grew 36% to Rs 35.5 billion. Assets under management rose to Rs 53 billion, from Rs 43.6 billion a year before. Return on equity almost doubled from 13.9% in FY17 to 26.5%.
The ratio of operating expenses ratio to GWP improved from 21 % in FY17 to 18 %. The claims ratio declined from 75% to 71%.
The company expects a growth rate for the coming quarters of 36 %, double that of the sector.
“Health (insurance) grew 19 % last year, with good growth expected to continue this year,” Mahapatra told Business Standard, with the majority of covers being sold to semi-urban and rural customers. The combined ratio improved to 98 %, without accounting for extraordinary income, from 113% in FY17.
The solvency ratio improved from 2.19 in FY17 to 2.54 in FY18. Motor insurance premiums grew 44% and fire insurance by 10%. Crop insurance grew 125%.
Motor insurance is 28% of SBI General’s premium revenue, followed by fire at 23%, and crop insurance at 20%. Health insurance covers, including those for personal accidents, were 14%.
Source: Business Standard