SBI General Insurance — a 74:26 joint venture of the State Bank of India and Sydney-based Insurance Australia Group — is planning to more than double its gross written premium in 2013-14.
The company has earmarked a capital infusion of Rs 200-250 crore this fiscal even as it hopes to start adding to its bottomline by 2014-15.
“This year, we are targeting about 140-150 per cent growth on the gross written premium,” said Bhaskar J. Sarma, managing director and chief executive officer of SBI General Insurance. The insurer had earned Rs 770 crore as gross written premium in 2012-13.
“We are looking to break even by 2014-15. We also require capital to expand our business,” Sarma said. The company had started its operations with a seed capital of Rs 150 crore in 2010.
Leveraging on the wide network of the SBI and its associates, the company is looking to earn a premium of about Rs 1,100 crore this fiscal in the retail segment against Rs 470 crore last year.
Sarma said growth would primarily be supported by the SBI’s captive consumer base.
“Retail will be the key segment that will drive growth in the current year. The major focus will be on motor and health, both through bank and non-bank (agency) channel,” he said.
He said motor would continue to contribute around 40 per cent to the portfolio, while health’s share was likely to rise to 20 per cent following the addition of the family floater plan, besides individual and group insurance.
Sarma said the SBI’s focus on retail lending could offer an opportunity for the firm to add to its market share.