Private sector non-life insurer, SBI General Insurance, posted a 23.4% year-on-year (YoY) growth in FY20 net profit. It amounted to ₹412 crore and was helped by a healthy top-line growth.
However, SBI General Insurance’s profit after tax was ₹333.9 crore, previous fiscal (FY19), as per its previous public disclosures.
In the regulatory filing, SBI General also stated that it’s gross written premium saw an increase of 45% YoY which added up to ₹6,840 crore in FY20. The underwriting profit, however, was at ₹61 crore in FY20 compared to ₹79 crore in the year-ago period.
SBI General has affirmed that the key differentiator for the company has been the diversified product portfolio spread across the motor, health, home, personal accident, commercial lines and crop insurance, in its post-earnings call.
SBI General is a joint venture between State Bank of India, Premji Invest and Warburg Pincus Group. Australia’s IAG ,which used to be a joint venture partner, exited SBI General by selling off its 26% stake to Premji Invest and Warburg Pincus Group in March 2020.
Pushan Mahapatra, MD and CEO of the insurance company said, “SBI General has maintained a steady 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.”
The insurer’s profit before tax (PBT) stood at ₹564 crore in FY20 as opposed to ₹470 crore in FY19. The company also reported an incurred loss ratio of 71.1% in FY20 compared to the 72%, incurred in FY19.
SBI General also mentioned a combined ratio of 98% in FY20 compared to 96.7% in the year-ago period. The non-life insurer’s solvency stood at 227% as against the regulatory requirement of 150%. In FY19, the solvency stood at 234%. A combined ratio below 100% indicates an insurance company is making underwriting profits.