Mumbai, November 22, 2019: Leading General Insurance provider, Shriram General Insurance Company Ltd. (SGI) declared its results for the second quarter and first half of Financial Year 2020. The company posted net profit of Rs. 169 crore for Q2FY20 as against Rs 97 crore as of Q2FY19. The net profit jumped 74.23% in Q2FY20 as compared to Q2FY19. For H1FY20 net profit stood at Rs 322 crore witnessing a growth of 51.17% as compared to H1FY19
The other highlights of the results are:
· Net Earned Premium for Q2FY20 stood at Rs 565 crore witnessing a growth of 10.78% in Q2FY20 as compared to Q2FY19 while for H1FY20 Net Earned Premium grew 10.66% as compared to H1FY19 to stand at Rs 1111 crore.
· During H1FY20, SGI has written a gross premium of Rs. 1177 Cr. as against Rs. 1087 Cr. for H1FY19. Net Incurred Claims has gone down by 13.53% and claims ratio has come down to 70% from 89%.
· The improvement in operating profit was influenced by the improvement in claims ratio. Solvency margin ratio of the Company is at 3.37 times as against the regulatory requirement of 1.50 times.
· During H1FY20, SGI was able to issue 1046609 policies online as against 618159 policies in H1FY17.
· During H1FY20 SGI also succeeded in bringing down the usage of cover notes to nil and direct issuance of policy has grown to 99.87%. During the same period SGI issued 684161 policies generating a GWP of Rs 367 crore through its B2B Mobile App.
· During the six-month period ended September 30, 2019 SGI paid an interim dividend of 61.80% to its shareholders. 24.50% interim dividend being paid in Q1FY20 and 37.30% paid in Q2FY20.
Mr. Neeraj Prakash, Managing Director, Shriram General Insurance, said, “Q2FY20 marked yet another good quarter for SGI. We have written a gross premium of Rs 1,177 crore for H1FY20 as against Rs 1,087 crore for H1FY19. The Net Incurred Claims has gone down by 13.53% and claims ratio has come down to 70% from 89%. These developments have helped the company post this kind of growth.”