The general insurance subsidiary of State Bank of India (SBI), SBI General Insurance, reported a profit of Rs.113 crore in the first quarter of the fiscal year that ended in June 2018. The net profit of the company in the year-ago quarter was Rs.50 crore.
The company has witnessed a growth of 12% in Q1 as against the industry growth which is 52% in the same quarter.
SBI General Insurance also improved in many areas such as solvency ratio, investment income, Gross Written Premium (GWP), and so on.
The solvency ratio of the insurer improved from 2.30 last year to 2.38 this year. The total investment income in Q1 of the company is Rs.106 crore which is a 10% increase from Rs.96 crore from the year-ago period. The GWP of the insurance company saw a year-on-year growth of 52% from Rs.667 crore in 2017 to Rs.1,011 crore in 2018.
The insurer made a maiden underwriting profit of Rs.7 crore as opposed to a loss of Rs.46 crore in the previous year. The company, that believes that the true strength of an insurance company is gauged from the underwriting profits, is proud of its maiden profits.
While the combined ratio of SBI General Insurance was 111% in Q1 of the previous fiscal year, it was 99% in the present fiscal year. As per the data revealed by the General Insurance Council, SBI General Insurance received Rs.204.41 crore in the fire sector, Rs.239.04 crore in the motor segment, and Rs.352.56 crore in miscellaneous sectors during the first quarter of FY 2018-19.
Source: Economic Times