SBI General Insurance, at Rs 217cr, has recorded a 65 per cent jump in its net profit during H1 18-19 vis-à-vis Rs 132 cr for H1 17-18. The eighth largest private general insurance player has witnessed a sustainable underwriting profit of Rs 37cr in H118-19 vis-à-vis an underwriting lossof Rs.60cr in H1 17-18.
The Gross Written Premium (GWP) also saw a growth of 30 per cent from Rs. 1,593 cr in H1 17-18 to Rs. 2,067cr in H118-19.
The Combined Ratio, the key figure in assessing the profitability of a general insurance company, of the company is at 96.8 per cent while solvency ratio of the company for H1 18-19 stands at 2.46.
Rikhil K. Shah, CFO, SBI General Insurance commenting on the company's underwriting profit said, it was due to cost optimisation and improvement in reinsurance commission.
“Our cost to GWP ratio has improved to 14 per cent in Q2 this year from 18 per cent a year ago. Our combined ratio in motor and health portfolios are 93 per cent and 54 per cent respectively.while our profits have increased by almost 65 per cent (excluding the profit impact of one time reinsurance ceding in LTH). We have, additionally secured a sustainableunderwriting profit to the tune of Rs. 37 cr for H1 18-19.We aim to sustain this by partnering with our customers in underserved markets and fast-tracking claim processing. The insurance industry is in an interesting phase and we are looking forward to leverage this for being recognised as a leader in the segment.”he said.
The company's agri portfolio has gone up from Rs 400 crore in H1 2017-18 to Rs 600 cr in the H1 2019-19..
.“We have participated for both, Kharif and Rabi as well. We are there in 10 states. So far there have been no claims, but 100 per cent provisioning has already been done by us,''said Shah.
On on account of Kerala flood, the company has taken a net hit of Rs 31 crore though it was saddled with total claims worth of Rs 150 crore.
The general insurer has an average return of 7.62 per cent on its investment portfolio.
Shah said that his company had participated in the bidding process of NationalHealth Protection Scheme(NHPS) of six states but didn't find a proper pricing .
In a recent development of stake sale by its parent State Bank of India, the company was valued at Rs. 12,000 crore.