Private sector non-life insurer SBI General Insurance posted a 23.4 percent year-on-year (YoY) increase in FY20 net profit to Rs 412 crore helped by a healthy topline growth.
The insurer had a profit after tax of Rs 333.9 crore in the year-ago period (FY19), as per its public disclosures.
SBI General’s gross written premium rose 45 percent YoY to Rs 6,840 crore in FY20. The underwriting profit was at Rs 61 crore in FY20 compared to Rs 79 crore in the year-ago period.
The key differentiator for the company has been the diversified product portfolio spread across the motor, health, home, personal accident, commercial lines and crop insurance, the insurer said in a statement.
SBI General is a joint venture between State Bank of India, Premji Invest and Warburg Pincus Group. Australia's IAG which was earlier a joint venture partner exited SBI General by selling its 26 percent to Premji Invest and Warburg Pincus Group in March 2020.
Pushan Mahapatra, MD and CEO said, “SBI General has maintained a steady growth of 45 percent as compared to industry growth of around 12 percent 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.”
The insurer’s profit before tax (PBT) stood at Rs 564 crore in FY20 as against Rs 470 crore in the year-ago period. The company reported an incurred loss ratio of 71.1 percent in FY20 compared to 72 percent in FY19.
SBI General’s combined ratio of 98 percent in FY20 compared to 96.7 percent in the year-ago period. The non-life insurer’s solvency stood at 227 percent as against the regulatory requirement of 150 percent. In FY19, the solvency stood at 234 percent.
A combined ratio below 100 percent indicates an insurance company is making underwriting profits.
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