SBI General Insurance's net profit swells 150% to Rs 4 bn in FY18

The ratio of operating expenses ratio to GWP improved from 21 % in FY17 to 18%

SBI General Insurance reported net profit growth of about 150 per cent in 2017-18 to Rs 3.96 billion. 

Underwriting profit was Rs 320 million, against a loss in this segment of almost Rs 2 billion in FY17. 

Pushan Mahapatra, managing director, added: “We have also recorded a lower loss ratio and minimised our operating expenses further.”

Gross written premium (GWP) revenue grew 36 per cent to Rs 35.5 billion. Assets under management rose to Rs 53 billion, from Rs 43.6 billion a year before. Return on equity almost doubled from 13.9 per cent in FY17 to 26.5 per cent. 

The ratio of operating expenses ratio to GWP improved from 21 per cent in FY17 to 18 per cent. The claims ratio declined from 75 per cent to 71 per cent.

The company expects a growth rate for the coming quarters of 36 per cent, double that of the sector.  

“Health (insurance) grew 19 per cent last year, with good growth expected to continue this year,” Mahapatra told Business Standard, with the majority of covers being sold to semi-urban and rural customers. The combined ratio improved to 98 per cent, without accounting for extraordinary income, from 113 per cent in FY17. 

The solvency ratio improved from 2.19 in FY17 to 2.54 in FY18. Motor insurance premiums grew 44 per cent and fire insurance by 10 per cent. Crop insurance grew 125 per cent.

Motor insurance is 28 per cent of SBI General’s premium revenue, followed by fire at 23 per cent, and crop insurance at 20 per cent. Health insurance covers, including those for personal accidents, were 14 per cent.