Company records surge in online policy subscription
Mumbai: Shriram General Insurance Company Limited announced its Q2 FY 18 financial results posting strong rise in net profit to Rs 143 cr at a rise of 150% on YoY basis. The net earned premium too witnessed a healthy rise to Rs.463 cr – up 11.45% on a YoY basis.
The company’s operating profit grew from Rs. 71 cr to Rs. 189 cr at a rate of 166.19%. Investment income on policyholder fund increased from Rs.129 cr to Rs. 243 cr – a growth of 88.6%. The gross written premium grew 12.59% to Rs. 501 cr. All these figures are basis YoY comparison.
In terms of half yearly performance, the company managed to write a gross premium of Rs.980 cr against Rs. 866 cr for the corresponding half last year. Net Incurred Claims has gone up by 8.01% though claims ratio has come down to 98% from 101%.
SGICL issued 337859 policies online as compared to 87733 policies in H1 of FY16-17. During the six month period ended 30-9-17 SGI also succeeded in bringing down the usage of cover notes to below 1% and direct issuance of policy has grown to 84.97% as against 52.90% in FY 16-17.
The Operating profit for six month period is up by 116.92% and is 30.98% of the NEP. Profit after tax has increased by 98.34%. The improvement in operating profit was influenced by the higher investment income on policyholder funds. Solvency margin ratio of the Company is at 2.09 times as against the regulatory requirement of 1.50 times.
Mr. Neeraj Prakash, Managing Director of Shriram General Insurance, said that “GWP growth continues to be susceptible to improvement in general economic activity, and volatility in underwriting margins due to discounting because of stiff competition and entry of new players in the market.”
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