SBI General profit rises 64% to ~2.17 bn in H1

SBI General Insurance has recorded a steep 64 per cent rise in net profit at ~2.17 billion for the six-month period ended September, driven by a sustainable underwriting profit.

The general insurance arm of banking major State Bank of India (SBI) reported an underwriting profit of ~370 million, against an underwriting loss of ~600 million in the same period last fiscal year, the company said in a statement on Wednesday.

Gross written premium rose 30 per cent to ~20.67 billion during the reporting period, the company said.

Rikhil K Shah, chief financial officer of the company, said, "We firmly believe that the true strength of an insurance player lies in securing underwriting profits. Therefore, while our profits have increased by almost 65 per cent (excluding the profit impact of onetime reinsurance ceding in LTH), we are proud to announce that we have additionally secured a sustainable underwriting profit of ~370 million."

"We aim to sustain this by partnering with our customers in underserved markets and fast-tracking claim processing," he added.

Against this, the industry grew much lower at 13 per cent, against 19 per cent in the year-ago period.

The company explained that the net income is exclusive of the impact of one-time LTH reinsurance ceding. Including this, the net income would been ~3.01 billion and the underwriting profit would have been ~1.1 billion on a combined ratio of 87 per cent, it said.