SBI General net profit rises 53% to Rs 300 cr in H1 FY 2020-21

he general insurer has manged to achieve a positive Combined Ratio, indicating the operation efficiency of a general insurer, of 96.8 per cent in H1FY 2020-21. P.C. Kandpal, MD and CEO, SBI General Insurance Company Limited said, “Our strong distribution network and diversified products portfolio have enabled us to strike growth rate of 17 per cent  against the industry growth rate of 1.6per cent. Led by Health, we expect to close this year with an overall growth of 20 per cent. Since August, there has been uptick in the motor segment, however it will still be some time before the segment will come back to pre-Covid level. On back of massive increase in use of personal mode of commute due to the pandemic, we are expecting positive traction in the third-party cover business. In H1, our Crop and Fire segments have also contributed in our growth. 

 

Mumbai:

With an underwriting profit of Rs. 56 cr,SBI General Insurance seen its net profit surging by 53 per cent year-on-year(y-o-y) to Rs 300 crore in H1 FY 2020-21.

The general insurer has manged to achieve a positive Combined Ratio, indicating the operation efficiency of a general insurer, of 96.8 per cent in H1FY 2020-21.

The general insurer recorded a profit before tax(PAT) of Rs. 402 cr for the reporting period  compared to Rs. 278 cr for H1 FY 19-20. 

Amidst Covid-19 pandemic, the gross written premium (GWP) of the company also witnessed a growth of 17 per cent y-o-y to Rs. 3658 cr in H1 FY 20-21.

The solvency ratio for H1 FY20 –21 is 2.34 against 2.12 for the same period, last year.

P.C. Kandpal, MD and CEO, SBI General Insurance Company Limited said, “Our strong distribution network and diversified products portfolio have enabled us to strike growth rate of 17 per cent  against the industry growth rate of 1.6per cent. Led by Health, we expect to close this year with an overall growth of 20 per cent. Since August, there has been uptick in the motor segment, however it will still be some time before the segment will come back to pre-Covid level. On back of massive increase in use of personal mode of commute due to the pandemic, we are expecting positive traction in the third-party cover business. In H1, our Crop and Fire segments have also contributed in our growth. 

Rikhil Shah, CFO, SBI General Insurance said, “Despite the pandemic, SBIG has managed a steady growth in H1 of FY 20 – 21 and health category has seen a growth of 57 per cent this year. SBIG has also recorded a healthy solvency ratio of 2.34 as against the regulatory requirement of a minimum of 1.50. SBI General believes in offering varied products customized to customer needs. We are scaling up our product bouquet with instant insurance solutions for the ease of consumers.”

At the start of Q2, SBI General revamped its brand identity. It conveys SBIG’s future-ready services to an evolving consumer consisting of traditionalist and modernist. 


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