Private non-life insurer SBI General Insurance is set to come out with its initial public offering (IPO) in FY20. It is betting on home, health and property segments do drive future growth.
In an interaction with Moneycontrol, Pushan Mahapatra, MD & CEO, SBI General Insurance, talks about the business prospects and road ahead. Excerpts:
Q. Your IPO is coming out in FY20. Have the preparations begun for the process?
A. An IPO is a shareholder decision. SBI (joint venture partner) has already spoken about the forthcoming IPO in FY20. It will happen at an appropriate time and it is still early to talk about preparations. But having said that, we have behaved like a listed company, be it from the disclosures point of view or from the corporate governance perspective.
I am of the belief that with more IPOs from insurance companies, it will be better for the industry from a corporate governance viewpoint.
Q. SBI General had a significant jump in the underwriting profit. What aided this growth?
A. The focus is both on the topline as well as bottomline. We are only writing those businesses that are sustainable.
Q. What will be the areas of focus in FY20?
A. We are looking at segments like health, home and property. Health includes both retail health and corporate health, though the former is a bigger portion of our portfolio. We are also looking to deepen our product focus on the MSME segment.
Motor will be the big base for us and we are hoping that the new government through its initiatives around the economy, infrastructure and manufacturing will help spur the consumption growth in the market.
Q. You had mentioned that SBI General wants to be 'digital'ready'. Could you elaborate on this initiative?
A. We are planning to enter into partnerships with digital entities. These would include e-commerce companies as well. Our products have also been widely accepted on YONO, the digital banking platform of SBI.
Q. Would SBI General be open to taking part in government-sponsored schemes like PM Jan Arogya Yojana-Ayushman Bharat?
A. Mass projects like PMJAY could be a game-changer for the health insurance industry. However, the pricing should be based on actuarial calculations. Going forward, having an insurance route will determine its sustainability. So, we are looking at this opportunity.
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