SBI General Insurance declares 51% gross written premium growth in H1FY20
SBI's gross written premium has been at Rs 3,118 crore and profits before tax at Rs 278 crores in H1FY20
SBI General Insurance, one of the leading general insurance companies in India, has posted a profit before tax of 278 crore for the first half of financial year 2019-20 (H1FY20) compared to 256 crore in the previous year. The gross written premium (GWP) has witnessed a significant growth of 51 percent from Rs 2,067 crore in H1FY19 to Rs 3,118 crores in H1FY20. GWP is the total amount customers are required to pay for insurance coverage on policies issued by a company during a specified period of time.
The solvency ratio for FY20 is 2.12. The company’s investment book improved to Rs 6,605 crore in the financial year 2019-20, compared with Rs 5,790 crore in corresponding period the previous financial year, the company said in a statement. The general insurance arm of State Bank of India (SBI) reported an underwriting profit of Rs 37 crore in H1 19-20.
“The year so far has witnessed steady growth, reflecting an upward graph. We are optimistic that the high-growth phase will endure while the altered sector landscape, industry regulations and improved economics will ensure growth acceleration. An improved distribution network, intelligent investments, backed with high-end technology will remain key moats for sustaining our RoE of 21.6%,” said Pushan Mahapatra, MD & CEO, SBI General Insurance.
Mahapatra said that the bank has settled 99 percent of claims during some of the recent natural catastrophes.
Sector-wise break up of growth:
Crop insurance has registered a growth of 88 percent, fire insurance has registered a growth of 67 percent, Personal Accident insurance or PA posted a 57 percent growth and Health insurance growth has been at 49 percent.