After reporting significant growth in gross written premium and improved financial numbers in 2017-18, Bharti AXA General Insurance now envisions break-even by the end of the current financial year.
The private non-life insurer, a joint venture between Bharti Enterprises and French insurer AXA, is betting on growth and profitability.
The company has registered 34 per cent growth in gross written premium (GWP) to Rs 1,772 crore in the financial year 2017-18 from Rs 1,326 crore during 2016-17.
Its loss ratio 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.
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.
''All the above initiatives contributed to an impressive improvement in the financial health of the company, with a clear immediate visibility of breaking even,'' said Sanjeev Srinivasan, MD and CEO, Bharti AXA General Insurance.
The company's core product offerings of health, travel and SME recorded notable growth in FY18, while its foray into the crop business was successful with contribution of 21 per cent GWP in FY18.
“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,’’ Srinivasan added.
Recently, Bharti AXA Life Insurance turned profitable by posting a maiden profit of Rs 5 crore for the financial year ended March 31, 2018. This was the first time Bharti AXA Life Insurance reported a profit since it started in 2006, on the back of better productivity and cost efficiency.