Mumbai: Driven by better underwriting profit and increase in contribution from its direct business models like agri and retail health insurance, Bajaj Allianz General Insurance today reported a 66 per cent rise in net profit to Rs 234 crore in the July-September quarter.
Crop insurance premium jumped to Rs 737 crore from Rs 159 crore a year ago, driven by the private general insurer's participation in the Prime Minister Fasal Bima Yojana which was implemented from July 1.
The retail health insurance portfolio also grew by 20 per cent in the reporting period. Gross written premium increased by 45 per cent to Rs 2,179 crore from Rs 1,500 crore a year ago. Moreover, the company reported an underwriting profits of Rs 57 crore against a loss of Rs 8 crore a year ago.
The company reported a healthy combined ratio of 94.3 per cent and solvency ratio at 253 per cent, which is well above the regulatory requirement of 150 per cent.
"The 66 per cent growth in profits can be attributed to our prudent underwriting decisions, better expense management and an increased contribution from our direct business models," Managing Director Tapan Singhel said.
"Our investments in strategic initiatives — virtual offices and all-women branches — to improve distribution and fuel growth in personal lines of insurance yielded results and led to the topline growth," he said.
Significant contribution by agriculture and retail health insurance businesses was also instrumental for the growth, he added.
On business outlook, Singhel said, "Given our obsession with customers, the future will see increased investments in product and service innovations as well as reaching out to newer markets through digital interventions to continue the growth trajectory."
For the first half of FY16, net income stood at Rs 366 crore from Rs 288 crore a year ago, while underwriting profit went up to Rs 29 crore from Rs 20 crore a year ago.
Gross-written premium rose to Rs 3,706 crore from Rs 2,822 crore a year ago, and underwriting profit stood at Rs 57 crore as against a loss of Rs 8 crore a year ago.
