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Bharti AXA General Insurance, a private general insurer, has recorded a net profit of ₹95 crore in the first six months of the current fiscal. The company had recorded a net loss of ₹90 crore in the same period last fiscal. However, gross written premium for April-September 2020 slipped to ₹1,574 crore (₹1,586 crore).
The marginal drop in the premium income could be attributed to the impact of the ongoing Covid-19 pandemic, which resulted in flat growth in line with the non-life insurance industry, this general insurer said.
It may be recalled that Bharti AXA General Insurance is in the process of getting merged with ICICI Lombard General Insurance. This merger proposal has been approved by the CCI, IRDAI, BSE and NSE. The deal is expected to be completed in the next fiscal, sources said
Optimistic on growth prospects
Commenting on business performance in the first half this fiscal, Bharti AXA General Insurance MD and CEO Sanjeev Srinivasan said, ‘‘As the headwinds followed the Covid-19 pandemic, subsequent lockdowns and restrictions, we shifted our focus towards ensuring that customers’ plight is better managed in these trying times. The judicious investment made formerly in tech solutions across all touch-points reaped immense benefits in this period and helped us respond with the required agility. The quick adaptation to the new normal, driven by digital realities and changed customer needs helped build a better customer-connect and strong performance during this period.
With the economic and business activities picking up post-lockdown, we are confident of witnessing a positive shift from the current challenging scenario as part of our long-term growth strategy.’’
Double-digit growth
Bharti AXA General Insurance achieved high double-digit growth in health and personal accident segment, commercial lines, and crop insurance in the first half of this fiscal.
The health and personal accident segment saw a significant 47 per cent growth at ₹226 crore in the first half of the current financial year as compared to ₹153 crore in the same period of 2019-20.
The company recorded strong double-digit growth in both commercial lines and crop insurance segments. While the company continued focusing on large corporates, it further strengthened its commitment towards SME and MSME segments which helped post 28 per cent growth at ₹299 crore in the commercial lines segment during the April-September period of this fiscal against ₹234 crore in the corresponding period a year earlier.
Crop insurance grew 18 per cent at ₹551 crore in the first half of 2020-21 from ₹467 crore in the same period of the previous fiscal.
Motor insurance de-grew 26 per cent to ₹495 crore in the first six months of this fiscal from ₹669 crore in the same period a year ago. ‘’There has been an evident dip in vehicle insurance mainly because of the drop in sales of new vehicles during this period. The automobile sales performance due to the ongoing pandemic directly affected the prospects of motor insurance,’’ Srinivasan said.
The combined ratio, a measure of profitability that takes into account claims and expenses as a proportion of premiums, stood at 111.5 per cent during the April-September 2020-21 against 122.1 per cent in the corresponding period of 2019-20.
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