SBI General Insurance net profit doubles to Rs 1.13 billion in June quarter

SBI General Insurance, the non-life subsidiary of SBI, on Tuesday reported 126 per cent year-on-year growth in net profit for the three months to June at Rs 1.13 billion.

The general insurer's net profit stood at Rs 500 million in the year-ago period, a release said.

The company recorded its maiden sustainable underwriting profit of Rs 70 million in June quarter, compared with an underwriting loss of Rs 460 million last year.

Its gross written premium (GWP) registered a growth of 52 per cent at Rs 10.11 billion, against Rs 6.67 billion in the same period last year.

Solvency ratio improved to 2.38 in the reporting quarter, from 2.30 in the same period last year.

"We are one of the youngest players in the sector and have seen a steady but impressive growth since commencing operations. We have witnessed a growth of 52 per cent in the first quarter of FY19, against an industry growth of 12 per cent," said Rikhil Shah, chief financial officer, SBI General Insurance.

"We firmly believe that the true strength of an insurance player lies in securing underwriting profits and we have begun this financial year with an underwriting profit of Rs 7 crore (70 million)," he added.

Combined ratio of the company came down to 99 per cent from the earlier 111 per cent.

Investment income of the general insurer stood at Rs 1.06 billion during the first quarter, compared with Rs 960 million in the same period last year.

SBI General Insurance Company, which began its operations in 2010, is a 74:26 joint venture between the State Bank of India and Insurance Australia Group (IAG).