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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Government must give up majority ownership in loss making PSU banks

    After four years of braving economic slowdown and provisioning for rising non performing assets (NPAs), public sector banks are in urgent of capital.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Cooperative federalism and governance

Improving relations between the states and the Centre to improve ...

Kuruvilla Pandikattu SJ

Reason drives religion, science

Both religion and science are driven by reason, claims Rama ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture