GUWAHATI, June 25: Bharti AXA General Insurance, a joint venture between Bharti Enterprises, one of India’s leading business groups, and AXA, one of the world’s largest insurance companies, today said the company has registered 34 per cent growth in gross written premium in the year ended March 31, 2018.
The company recorded a surge in its gross written premium (GWP) to Rs. 1,772 crore in the financial year 2017-18 from Rs. 1,326 crore during 2016-17.
The key indicator for any General Insurance business is loss ratio, which has reduced to 83 per cent in the year ended March 31, 2018 from 86.4 per cent in the financial year 2016-17, despite strong GWP growth, thereby improving the overall health of the financials.
Commenting on the performance of the company, Managing Director and Chief Executive Officer, Bharti AXA General Insurance, Sanjeev Srinivasan, said, “We have achieved our growth momentum largely on the success of three key focus areas – robust rise in gross written premium, improvement in combined operating ratio, and channel and segment diversification.”
The company has invested in building a robust partnership business, complemented by significantly scaling the current lines of corporate business, agency, motor and digital business.
“To establish ourselves as a leading player in the General Insurance industry, it is pertinent to provide an all-encompassing offering to the customer across all his/her requirements. Our core product offerings of health, travel and SME recorded a notable growth in FY18. Our foray into the crop business was immensely successful with contribution of 21 per cent GWP in FY18.
Now, we are focusing on portfolio diversification and new age technology in order to grow other lines of business, improve combined ratio and boost bottom line in the long run,” Srinivasan said.
The company raised subordinated debt of Rs. 220 crore in the last fiscal and has a solvency ratio of 1.86 as on March 31, 2018. All the above initiatives contributed to an impressive improvement in the financial health of the company, with a clear immediate visibility of breaking even.
“Apart from improvement in growth yardsticks, portfolio mix, cost efficiency and channel productivity also contributed to the reduction in the loss in the past financial year. We hope the growth momentum will continue in the current fiscal with a focus on profitability,” he added.