Private general insurer SBI General posted a 53 percent year-on-year (YoY) increase in net profit for H1FY21 at Rs 300 crore.
In an interaction with Moneycontrol, Rikhil Shah, CFO, SBI General Insurance said the insurer has been able to write much higher business than the industry due to the strength of the State Bank of India (SBI) brand and the distribution channel.
The gross written premium (GWP) grew 17 percent YoY to Rs 3,658 crore in H1FY21. The solvency ratio for H1FY21 was 2.34 as against 2.12 for the same period last year.
"We were able to register 17 percent premium growth as against 1.6 percent of the industry. We always outperformed the industry but this time it is much higher," he added.
Shah said SBI General grew across business segments, be it health, motor or crop.
"We have seen a growth of 57 percent in health business, 31 percent growth in the motor business while industry de-grew, 11 percent growth in crop business and 9 percent growth in fire," he added.
The combined ratio stood at 96.8 percent meaning the insurer is posting underwriting profit. The underwriting profit stood at Rs 56 crore for H1FY21.
SBI General has over 22,900 IRDAI certified advisors including the SBI group employees and over 12,000 agents.
Shah also said SBI General is comfortable on the capital fund and is not looking to raise any immediate capital.
As of H1FY21, the solvency ratio stood at 2.34 as against the regulatory requirement of 1.50.
"We have been able to contain losses in segments like fire because of the hike in premium rates earlier this year. This has helped in the underwriting profit as well," he added.
SBI General Insurance closed FY20 with a GWP of Rs 6,840 crore with a YoY growth of 45 percent.
SBI General Insurance commenced its operations as a joint venture between SBI and Insurance Australia Group (IAG). Post the stake sale by IAG in March 2020, SBI now owns 70 percent, while Napean Opportunities LLP (Premji Invest affiliate) owns 16.01 percent. Further, Honey Wheat Investment, an entity forming part of Warburg Pincus Group owns 9.99 percent, PI Opportunities Fund-1 owns 2.35 percent and Axis New Opportunities AIF-I owns 1.65 percent stake in the general insurer.