SBI General net profit grows by 64 per cent to Rs 2.17 bn for H1 FY19

SBI General Insurance posted a net profit growth of 64 per cent for the first half of the financial year 2019 at Rs 2.17 billion as against a net profit of Rs 1.32 billion in the corresponding period of the previous financial year. For the second quarter of FY2019, SBI General's net profit stood at Rs 1.04 billion. 

The company said that it made an underwriting profit of Rs 370 million in H1 FY2019 as against an underwriting loss of Rs 600 million during the same period of last financial year.

Rikhil Shah, Chief Financial Officer of SBI General Insurance said, “...while our profits have increased by almost 65 per cent (excluding the profit impact of one time reinsurance ceding during Q2 FY2018], we are proud to announce that we have, additionally, secured a sustainable underwriting profit to the tune of Rs. 370 million for H1 FY2019. We aim to sustain this by partnering with our customers in underserved markets and fast-tracking claim processing. The insurance industry is in an interesting phase and we are looking forward to leverage this for being recognised as a leader in the segment.”

Gross written premium increased by 30 per cent to Rs 20.7 billion in the April to September period of FY2019, as compared to Rs 15.9 billion in the corresponding period of FY2018. 

Solvency Ratio of the general insurer has marginally decreased from 2.67 in H1 FY2018 to 2.46 in H1 FY2019, as compared to the regulator's requirement of 1.50. 

The combined ratio has improved from 106.8 per cent in H1 FY2018 to 96.8 per cent at the end of H1 FY2019. 

The company has Rs 57.9 billion worth of Assets under Management (AuM) at the end of H1 FY2019, as against Rs 45.83 billion in AuM at the end of H1 FY2018. 

In a statement the company said, "figures reported in H1 FY2018 are devoid of the impact of one time long-term home (LTH) reinsurance ceding, including which, the Profit After Tax shoots up to Rs. 3.01 billion, underwriting profit at Rs. 1.1 billion, Combined Ratio at 87 per cent, leading to an annualised return on equity of around 48 per cent."

In a recent stake sale by the parent company State Bank of India, SBI General was valued at Rs 120 billion.