Strong Start to FY27
SBI General Insurance reported a 10.9% year-on-year increase in Gross Direct Premium Income (GDPI) to Rs 3,506 crore for the first quarter of FY27, the company said in a statement. The insurer said the growth was driven by a diversified portfolio and disciplined execution, with health premiums rising 49.9%, personal accident 26.3%, engineering 95.4% and marine cargo 16.8%.
The company, one of India's leading general insurers, reported comprehensive income of Rs 573 crore, up 4% from the year-ago quarter. Profit after tax stood at Rs 426 crore, compared with Rs 456 crore a year earlier, according to the company and its executives. The company said the decline was mainly due to one-off provisions, including around Rs 36 crore set aside for a Supreme Court directive on accidental death liabilities for homemakers, as well as crop receivables.
SBI General reported a solvency ratio of 2.0 times and a combined operating ratio of 96.18% for the quarter.
Fire Insurance Strategy
Naveen Chandra Jha, managing director and chief executive of SBI General Insurance, said the insurer will not chase fire insurance business at unsustainable prices, as intense competition pushes premiums lower in the segment. Speaking to The Economic Times, Jha noted that fire insurance is seeing discounts going up to 99%.
"The industry has to improve profitability," Jha said, adding that chasing top-line growth alone is not sensible given the industry's thin margins. He said the industry has a premium of around Rs 3.35 lakh crore but total profit of only about Rs 13,000 crore.
Jha said that while the fire insurance industry premium declined around 28%, SBI General's fire premium declined around 36%. He said the SBI group commands more than 25% of corporate clients, while fire contributes around 6-7% of the total market size for the insurer.
The CEO said October 1 will be an important date for fire insurance renewals.
Expense Management and Branch Expansion
SBI General's expense of management (EOM) is at around 26-27%, against the 30% limit set by regulators, Jha said. He said the company has headroom but does not want to go beyond the current level.
The company has expanded from 17 branches in 2011 to a nationwide presence across 182 branches, according to the company. Jha said the insurer had 30 health-focused branches in Andhra Pradesh and Telangana in August 2025, some manned by just two people.
Highlighting the distribution advantage, Jha said the combined branches of all insurance companies total around 22,000, while SBI alone has around 23,000 branches.
Health Insurance and Mis-selling
Addressing mis-selling, Jha said four things are extremely important: suitability, transparency, convenience and fairness. He said there have been instances where companies have quoted very low prices simply to win business.
Jha said hospitals are still resisting standard protocols and pricing, and that a committee is looking at these issues.
Ind AS Adoption and Listing Plans
SBI General Insurance became the first general insurer to report financial results under the newly adopted Ind AS framework, the company said in its statement. CFO Jitendra Attra said, "We're the first adopters of the Ind AS framework among the General Insurance companies," describing the transition as strengthening transparency and financial discipline.
On a potential public listing, Jha said the company is considering the move, noting that SBI Funds Management is already listed. "Performance should be more important than listing," he said.
Outlook
MD & CEO Naveen Chandra Jha said, "We have started FY27 on a strong note with sustained growth across all key parameters." The company said it remains focused on building scale across retail and commercial lines while maintaining a balance between expansion and financial discipline.