Bharti AXA General Insurance posted a net profit of Rs 3 million for the half-year ending September 30, 2018, as against a loss of Rs 593 million in the first half of the previous financial year. This is the maiden net profit for the company as of the first-half of FY2019 since it began operations in 2008.
Gross written premiums have increased 38 per cent to Rs 10.87 billion for H1 FY2019, as against Rs 7.88 billion in H1 FY2018.
Sanjeev Srinivasan, managing director and chief executive officer of Bharti AXA General Insurance, said, "We are focused on building sufficient scale to face market competition. Emphasis on channel and segment diversification, digitisation, better expense management, prudent product pricing and customer-centricity will help the company boost growth. We expect to maintain the growth momentum while continuing to focus on profitability and superior risk selection."
There was overall growth across all product segments such as health insurance, personal accident and travel, and commercial products and crop insurance. The corporate business grew by 67 per cent in the past year, while the retail business grew by 19 per cent during the same period.
The loss ratio has reduced to 77.8 per cent at the end of H1 FY2019, from 85.7 per cent in the same period a year ago, while the expense ratio has come down significantly to 38.7 per cent in H1 FY2019, from 45.9 per cent in the corresponding period of FY2018.
The combined ratio has improved by 15 per cent from 131.6 per cent in H1 FY2018 to 116.5 per cent as at the end of H1 FY2019. The combined ratio is a measure of the profitability and financial health of an insurance company and is calculated by adding the loss ratio and expense ratio.
"Our continued focus on increasing distribution network and business alliances has been a key driver for the company’s overall growth in both retail and corporate business... the path to profitability... has been an outcome of superior risk selection, improved operating efficiencies and our razor-sharp focus on automation and digitisation. These efforts have resulted in posting maiden profits for the company in the first half of the financial year 2018-19 and will help drive the growth momentum," said Srinivasan.