On track to break even in FY17: SBI General Insurance

After outpacing the industry, private sector non-life insurance firm SBI General Insurance is aiming to break even during the current financial year, a top official said.

Compared to last year, we have grown by 39 per cent in the last six months, that is till September. (Non-life insurance) industry grew by 29 per cent during the same period, SBI General Insurance Deputy CEO, Andrew Farlow told reporters.

The major growth drivers were crop, motor, health and insurance to small and medium enterprises, he said.

Asked about plans for the current financial year, he said We had reported first time profits this year.

The profits we made is Rs 6 crore (as of September 30, 2016) compared to last year’s net loss of Rs 102 crore. We are well on track to meet our target. Our focus is to achieve break even. That is the plan.

The company, during the first six months of the current financial year ending September 30, 2016, has collected a gross written premium of Rs 1,200 crore, as against Rs 2,042.50 crore registered during the last financial year.

Our focus is more on meeting the bottomline profits,he said, adding the company’s 80 per cent portfolio was in retail while the rest comprise commercial and SMEs.

To a query on whether the company was eyeing Rs 2,500 GWP during the current financial year, he said, It depends. Focus is on growing the business very profitably.

SBI General Insurance is a 74:26 joint venture between country’s largest public sector State Bank of India and Insurance Australia Group. It has about 7,500 agents across the country.

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