SBI General Insurance reports a 45% growth with a profit of Rs. 412 crores in FY19-20
- Revenue for FY 19-20 grows by 45% to Rs. 6,840 crores
- Net Profit of the Company stood at Rs. 412 crores in FY 19-20
- The combined ratio stands at 98% for FY 19-20
- Reports a healthy solvency ratio of 2.27
- Market Share of 3.59%
The key differentiator has been the company’s diversified product portfolio spread across the motor, health, home, personal accident, commercial lines, and crop, all of which have seen significant growth this year.
Bancassurance has been traditionally a key strength, but SBIG has been able to maintain strong growth across other channels be it Agency, OEM, Broking, etc. Growth across these channels has seen an upsurge this year. Mr. Pushan Mahapatra, MD, and CEO says, “SBI General has maintained steady growth in FY19- 20, we’ve managed growth of 45% as compared to industry growth of around 12% 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. New tie-ups & improved business from existing tie-ups in motor, higher branch activations/better penetrations across banca network, robust growth in Corporate, SME, and Crop business has also contributed to the growth.
He further added, “SBI General believes in offering varied products customized to customer needs. We have been focusing on digital transformation in the last 2 years both in terms of customer-facing digital assets as well as internal processes. This has improved our overall customer experience in terms of claim processing, policy issuance, etc. We are also scaling up our product bouquet with instant insurance solutions for the ease of consumers.”
SBI General also has had strong top-line growth and has been able to report UW profit on a consistent basis. It has also improved its customer base with having served 3,11,36,833 customers during the year FY20. The cumulative number of customers served to date adds up to 6.8 Cr. (approx.). SBI General Insurance booked an Underwriting Profit of Rs. 61 crore in FY 19-20. The Profit Before Tax (PBT) stood at Rs. 564 crores in FY 19-20 as compared to Rs. 470 crore in FY 18 -19. The Company reported an incurred loss ratio of 71.1% and a combined ratio of 98% in FY 19-20. The company’s solvency ratio stood at 2.27, signifying the sound financial position of the Company.
| Particulars | FY 19-20 | FY 18-19 |
| Gross Written premium (cr) | 6,840 | 4,717 |
| Profit before tax | 564 | 470 |
| Solvency Ratio | 2.27 | 2.34 |
| Underwriting Profit/(Loss) | 61 | 79 |
| Operating Expenses ratio to GWP | 13.5% | 12.7% |
| Claims ratio | 71.1% | 72% |
| Expenses Ratio to NEP | 26.9% | 24.6% |
| Combined Ratio | 98.0% | 96.7% |