SBI General hopes to break-even in FY16

Tags: News
SBI General Insurance is hopeful of breaking even by the end of the next fiscal with its focus on retail segment, a top company official has said.

"We aim to be break-even by FY16. This was our initial target and we are hopeful of achieving it during this period," SBI General Managing Director and Chief Executive Bhaskar J Sarma told PTI.

The subsidiary of banking behemoth SBI, which started operations in 2010, has already witnessed its combined ratio coming down last financial year.

Combined ratio is a critical measure of profitability in which a ratio below 100 indicates underwriting profit, and over 100 shows an insurance entity is paying out more money than its earns as premium.

Sarma said SBI General's combined ratio is likely to be around 130 per cent in FY14 from 210 per cent reported in the previous fiscal. "As we expand operations and earn more premium, the combined ratio will come down."

While a general insurer usually has a high combined ratio initially for setting up operations, it comes down as premium incomes go up in later years.

Sarma said the insurer has earned a yield of around 9 per cent from an investment corpus of around Rs 1,700 crore as of the December quarter of last fiscal.

The company is a joint venture between State Bank and Insurance Australia Group with the former holding a majority stake of 74 per cent.

EDITORIAL OF THE DAY

  • Insurance regulator must ban differential pricing and exemptions on health covers

    To reduce their overall losses, non-life insurance companies have been increasing the health insurance premium they charge retail customers, both at t

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Kumar Jain

Reframe mindset to achieve excellence

Niels Bohr, the famous quantum physicist on­ce said, “The opposite ...

Kuruvilla Pandikattu

More real than the reality

Virtual reality (VR), a te­chnology that offers an un­imaginably altered ...

Dharmendra Khandal

Urbanisation is costing us our wildlife

The road transport and highways minister Nitin Gadkari aims to ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture