SBI General profit touches Rs 396 crores in Financial year 2017–18
- Profit After Tax increased three fold to Rs. 396 cr in FY 17–18 from Rs. 153 cr in FY 16–17; secured Underwriting Profit of Rs. 32 cr in FY 17-18 vis-à-vis an Underwriting Loss of Rs 197 cr in FY 16-17
- Gross Written Premium witnessed a growth of 36%to Rs. 3553cr inFY 17-18against an industry growth of 17.5%
- Return on Equity stood at 26.5% for FY 17-18 against 13.9% last year
Mumbai, May8, 2018: SBI General Insurance, one of the leading general insurance companies in India, has recorded its first annual UnderwritingProfit of Rs. 32cr in FY 17-18 vis-à-vis an Underwriting Loss of Rs 197 cr in FY 16-17. The Profit AfterTax(PAT) stood at Rs. 396cr in FY 17 – 18 vis-à-visRs. 153 cr in FY 16 – 17. This includes an extraordinary incomeof Rs 131 crs. Excluding this income the PAT & underwriting results from operations is Rs 265 crs&(118)crs. The Gross Written Premium (GWP) also witnessed a significant growth of36% fromRs. 2607cr in FY 16-17 to Rs. 3553cr in FY 17-18.The solvency ratio for FY 17 – 18 improved to2.54, against 2.19 for the same period, last year.
Mr. PushanMahapatra, MD & CEO, SBI General Insurancecommented on the results, “We have always maintained that the true success of an insurance player lies in underwriting profit and we are excited to have moved towards the same, despite being one of the youngest players in the sector. We have also recorded a lower loss ratio and minimized our operating expenses further. Additionally, our PAT of Rs. 396cr for FY 17-18 as well as a higher than industry average growth rate in GWP has ensured that we are on track for achieving sustainable growth. We aim to be recognized as a customer-oriented organization, poised for growth.”
“With the joint push on general insurance by the government and insurance companies alike, we expect greater penetration into untapped and undertapped markets. We look forward to leveraging our extensivereach through our branches and intermediaries for the same, which has been one of the primary drivers for moving towards underwriting profits.
Our profits for the FY 17 – 18 have seen an upward trajectory due to our current distribution footprint, risk acceptance, claims handling and cost efficiencies. We pride ourselves in designing products to cater across demographics and segments, and will continue using technology for the benefit of our consumers,” he added, addressing SBI General’s growth plans.
Operating Expenses fell to 18% in FY 17 – 18 from 21% in FY 16 – 17, and Loss Ratio, to 71% in FY 17 – 18 from 75% in FY 16 – 17. The Combined Ratio for the current period has improved to 98% (without extra-ordinary income – 106%) from 113% last period. The Asset Under Management (AUM) for FY 17-18 is Rs. 5292 cr vis-à-vis Rs. 4362 in FY 16-17 and the Return on Equity (RoE) almost doubled to 26.5% in FY 17-18 from 13.9% in FY 16-17.Among the various lines of business, Motor Insurance had the maximum share of the pie at 28%, followed by Fire Insurance and Crop Insurance at 23% and 20% resp. Health Insurance and Personal Accident Insurance both stood at 14%for FY 17 – 18.
Appended is a table depicting the important numbers recorded for the period.
| FY 17-18 | FY 16-17 | |
| Rate of Growth | 36% | 28% |
| Gross Written premium (cr) | 3,553 | 2,607 |
| Profit before tax | 422 | 153 |
| Profit after tax | 396 | 153 |
| Industry Growth | 18% | 32% |
| Solvency Ratio | 2.54 | 2.19 |
| Reinsurance Ceded | 1,826 | 965 |
| Underwriting Profit/(Loss) | 32 | (197) |
| Underwriting Profit/(Loss) without extraordinary item | (118) | (197) |
| Reinsurance Ratio | 49% | 34% |
| Operating Expenses ratio to GWP | 18% | 21% |
| Claims ratio | 71% | 75% |
| Expenses Ratio to NEP | 27% | 38% |
| Combined Ratio | 98% | 113% |
| Combined Ratio without extraordinary item | 106% | 113% |
| Investment Income | 390 | 342 |
| Investment yield % | 8.18 | 8.99 |
| AUM | 5,292 | 4,362 |
| ROE | 26.5% | 13.9% |
About SBI General Insurance
SBI General Insurance Company Limited commenced its operations in the year 2010 and is a 74: 26 joint venture between State Bank of India and Insurance Australia Group (IAG). The company offers a wide range of general insurance products in retail and commercial space at affordable prices to make insurance accessible to all individuals and businesses.
The company offers a complete suite of products ranging from Motor, Health, Personal Accident, Travel and Home Insurance in the retail space and products like Aviation, Fire, Marine, Package, Construction & Engineering and Liability Insurance in the commercial space.
SBI General Insurance follows a robust multi-distribution model encompassing Bancassurance, Agency, Broking and Retail Direct Channels. Today, SBI General’s Distribution family includes over 21,000 IRDA certified employees including the State Bank Group employees, and over 8,000 Agents to make insurance easily available even in the remote areas of the country.
SBI General Insurance has established its presence in nearly 23000 branches of State Bank Group. The company’s current geographical exposure covers 110+ cities pan India with a presence of another 350+ locations through satellite resources. SBI General Insurance is currently serving three key customer segments i.e. Retail Segment (catering to Individual & Families), Corporate Segment (catering mid to large size companies) and SME Segment.
SBI General Insurance closed the financial year 2017-18 with a Gross Written Premium of Rs. 3553 cr at a YoY growth of 36%.
