With an underwriting profit of Rs 49 crore ,SBI General Insurance has recorded a profit of Rs 89 cr for Q3, FY 18-19, up 53 per cent, as compared to Rs 58 cr in the year-ago period.
With a valuation of Rs 12,000 crore at the end of Q2 FY 2018-19, the company’s share price has gone up to Rs 84 in Q3 2018-19 from Rs 60 in Q2 2018-19.,
SBI General is planning to float an IPO during the fourth quarter of FY 2019-20 .
The gross written premium (GWP) also witnessed a significant growth of 37per cent from Rs927 cr in Q3, FY 17-18 to Rs.1,272 cr in Q3, FY 18-19.
The company’s Investment income stood at Rs 74 crore for the reporting quarter from Rs 111 crore in the year as it has made higher provisions on its exposure to IL&FS. .
Rikhil Shah, CFO, SBI General Insurance commented,“ Our combined ratio has improved to 95 per cent for the year till date, whereas for the quarter it was at 92 per cent a year ago. We do hope that it should be in the range of 95-97 per cent by the fiscal-end. Gradually, over the years, we have improved our combined ratio through correct product mix, proper reinsurance program, risk selection and operating efficiency which helped improve our claim ratio. overall our underwriting profit of Rs 86 cr till date.’’
The company’s health business remained flat at Rs 120 crore during the reporting period..
The crop portfolio of the company grew to Rs 450 crore in Q3 2018-19 from Rs 200 crore in the corresponding quarter of 2017-18.
“ We have made 100 per cent provision in the crop insurance segment as the harvest season was still on and claims will continue to pouring in. Still we do believe that actual loss would be lower on our books,’’ said Shah.
The company has reduced its motor portfolio to Rs 230 crore in Q3 FY 2018-19 from Rs 250 crore in 2017-18.
Though the regulator IRDAI has capped payments by insurers to agents and dealers at 19.5 per cent for cars and 22.5 per cent for two wheelers and brought them under its purview as motor insurance service providers SBI Gen from November 2017, some private sector general insurers are offering double the commissions through unfair means..
The insurance industry is in an interesting phase right now and we are looking forward to leveraging this to get recognized as a leader in the segment, he said.
The solvency ratio of the company in Q3, FY 18 – 19 was 2.33 as against 2.72 for the same period last year.