SBI General Insurance net zooms to Rs251 crore on one-time income in Q2

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Mumbai: A one-time income of Rs170 crore from its reinsurance portfolio pushed up the net profit of SBI General Insurance to a massive Rs251 crore in the September quarter, from Rs5.5 crore in the year-ago period. The company’s gross premium increased to Rs926 crore from Rs690 crore a year ago, of which crop insurance alone contributed Rs306 crore in the reporting period.

“With a one-time income of Rs170 crore from reinsurance portfolio, we had an underwriting profit of Rs 156 crore in the second quarter against a loss of Rs78 crore in year-ago period,” Pushan Mahapatra, the managing director and chief executive of SBI General Insurance,

Driven by motor and fire covers, including home insurance, health insurance and farm insurance, the company is targeting a growth of 40% in its gross premium to Rs3,600 crore during the current fiscal, he said, adding, “We will have a balanced growth between topline and bottomline.”

“We are looking for an IPO in a medium-term,” he said. The company, with 2,600 employees, has been recognised as an employer of choice and is planning to ramp up its head count by 20% during the current fiscal.

The firm, Mahapatra said, generates almost 55% of its annual premium from SBI Group and other regional banks and would bring it down to 50% in future. The company had a claim ratio of 76% from 80% a year ago while the reinsurance ratio stood at 94% against 41% during the reporting period. As of now, the company has got 8,944 agents on its fold. “We want to increase the number of agents working with us to around 10,000 by the fiscal-end,” he said.