With an underwriting profit of Rs 61 crore and a combined ratio of 98 per cent,SBI General Insurance,that may hit the capital markets soon,has posted a net profit of Rs 412 crore,up 23 per cent year on year,in 2019-20.
The general insurer’s had grown its gross written premium (GWP) by 45 per cent to Rs 6,840 crore in FY 2019-20nad consequently its market share in the domestic general insurance industry has expanded to 3.59 per cent during FY 2019-20 from 2.77 per cent in FY 2018-19.
The Profit Before Tax (PBT) of the comapny stood at Rs 564 crore in FY 19-20 as compared to Rs. 470 crore in FY 18 -19.
Pushan Mahapatra, MD and CEO, SBI General Insurance said, “SBI General has maintained a steady growth in FY19- 20, we’ve managed a growth of 45 per cent as compared to an industry growth of around 12% for FY19-20. Despite being one of the younger players in the sector, we have seen impressive progress since commencing operations. 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 banca network, robust growth in Corporate, SME and Crop business has also contributed to the growth.
He further added, “SBI General believes in offering varied products customized to customer needs. We have been focusing on digital transformation in last two 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, policy issuance etc. We are also scaling up our product bouquet with instant insurance solutions for the ease of consumers.”
The company’s underwriting profit has fallen by 23 per cent to Rs 61 crore in FY 19-20 against Rs 79 crore in FY 2018-19. The a combined ratio of the general insurer has fallen to 98 per cent in FY 19-20 from 96.7 per cent in 2018-19.The company reported an incurred loss ratio of 71.1 per cent in FY 2019-20 against 72 in FY 2018-19.
The company’s solvency ratio stood at 2.27 per cent signifying sound financial position of the Company.
It has also improved its customer base with having served 3,11,36,833 customers during year FY20. The cumulative number of customers served till date adds up to almost 6.8 crore.
The key differentiator of the company has been the company’s diversified product portfolio spread across motor, health, home, personal accident, commercial lines and crop, all of which have seen a significant growth in Fy 2019-20.
Bancassurance has been traditionally a key strength of the company, but SBIG has been able to maintain strong growth across other channels be it agency, OEM, broking etc. Growth across these channels has seen an upsurge during FY 2019-20.