SBI General Insurance reports 45% growth with a profit of Rs.412 crores in FY19-20
Revenue for FY 19-20 grows by 45% to Rs. 6,840 crores
Hyderabad: SBI General Insurance, one of India’s leading general insurance company today, announced its financial results with a Net Profit of Rs. 412 crore and Gross Written Premium (GWP) of Rs. 6,840 crore in FY 19-20. The company has been steadily growing for last three years. SBIG has maintained its track record of being underwriting positive.
The key differentiator 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 this year.
Bancassurance has been traditionally a key strength, 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 this year. Mr. Pushan Mahapatra, MD and CEO says, “SBI General has maintained a steady growth in FY19- 20, we’ve managed a growth of 45% 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 & 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 2 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.”
SBI General also has had a strong top line growth and has been able to report UW profit on a consistent basis. 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 6.8 Cr. (approx.). SBI General Insurance booked an Underwriting Profit of Rs. 61 crore in FY 19-20. The Profit Before Tax (PBT) stood at Rs. 564 crore in FY 19-20 as compared to Rs. 470 crore in FY 18 -19. The Company reported an incurred loss ratio of 71.1% and a combined ratio of 98% in FY 19-20. Company’s solvency ratio stood at 2.27, signifying sound financial position of the Company.