SBI General Insurance Financials & Annual Report

SBI General Insurance Company Ltd Standalone Balance Sheet (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Sources of Funds
Share Capital	22,376	22,338
Reserves and Surplus	4,45,028	3,92,111
Fair Value Change Account - Shareholders	-15,001	31,426
Fair Value Change Account - Policyholders	-	109
Borrowings	70,000	70,000
Total	5,22,403	5,15,984
Application of funds
Investments - Shareholders	4,52,261	4,27,919
Investments - Policyholders	17,03,898	13,66,061
Fixed Assets	29,581	27,191
Deferred tax asset	1,782	1,834
Current Assets
Cash and Bank Balances	34,229	17,037
Advances and Other Assets	2,18,491	1,44,714
Total	2,52,720	1,61,751
Current Liabilities	13,23,873	9,26,223
Provisions	5,93,966	5,42,549
Total	19,17,839	14,68,772
Net Current Assets	-16,65,119	-13,07,021
Total	5,22,403	5,15,984
Contingent Liabilities	30,438	13,105

SBI General Insurance Company Ltd Standalone Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Operating Profit/(Loss)
Fire Insurance	31,062	29,989
Marine Insurance	-2,194	-5,143
Miscellaneous Insurance	-15,890	-31,747
Income from Investments
Interest, Dividend & Rent – Gross	12,315	14,674
Profit on sale of investments	65,604	31,233
Less: Loss on sale of investments	-16,272	-5,759
Amortization of Premium / Discount on Investments	165	30
Other income
Miscellaneous Income	7	29
Profit & Loss on Sale of Assets	44	45
Recovery of Bad Debts Written Off	20	-
Total	74,861	33,351
Provisions (Other than taxation)
For diminution in the value of investments	616	-209
For doubtful debts	-2	-46
Other Expenses
Bad debts written off	78	-
Interest on non-convertible debentures	5,831	639
Expenses towards CSR activities	469	741
Expenses on non-convertible debentures	-	143
Director 's fees	65	68
Exgratia & Interest	212	131
Total	7,269	1,467
Profit/(Loss) Before Tax	67,592	31,884
Current Tax	16,851	7,109
Deferred tax (Income)/ Expense	52	333
Short/ (Excess) provision of earlier years	-187	458
Profit/(Loss) After Tax	50,876	23,984
Appropriations
Transfer to debenture redemption reserve	700	700
Balance of profit/(loss) brought forward	1,73,633	1,50,349
Balance carried forward to Balance Sheet	2,23,809	1,73,633
Basic Earnings per share	22.75	10.83
Diluted Earnings per share	22.75	10.82

SBI General Insurance Company Ltd Standalone Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2025	31-03-2024
Cash flows from operating activities
Premium received from policyholder incl advance receipt	1,704,019	1,496,995
Other receipts	337	769
Payment to the re-insurers, net of commission and claims	-1,70,111	-1,94,349
Payment to co-insurers, net of claims recovery	15,754	37,848
Payment of claims	-778,638	-7,59,765
Payment of commission and brokerage	-255,335	-1,68,002
Payments of other operating expenses	-130,175	-1,28,333
Deposits, advances and staff loans	-1,525	-1,400
Income taxes paid (Net)	-16,681	-7,955
Service tax / GST (Net)	-82,179	-72,821
Director sitting fees	-65	-68
Retirement benefits	-1,820	-2,412
Net cash flow from operating activities	283,581	2,00,507
Cash flows from investing activities
Purchase of Fixed Assets	-11,615	-10,100
Proceeds from Sale of Fixed assets	63	49
Purchase of Investments	-1,469,012	-1,292,521
Sale of Investments	970,065	9,50,711
Rent / Interest / Dividend received on Investment	106,599	92,049
Investment in money market and liquid fund instruments	87,001	-55,838
Expenses related to Investments	-208	-146
Investments in Fixed deposits (Net)	-	200
Net cash flow from investing activities	-317,107	-3,15,601
Cash flows from financing activities
Proceed from issuance of share capital (net of share issue expenses)	2,078	84,487
Proceeds from borrowing	-	70,000
Interest on debentures	-5800	-639
Net cash flow from financing activities	-3,722	1,53,848
Net increase in cash and cash equivalents	-37,248	38,754
Cash and cash equivalent at beginning of the year	100,750	61,996
Cash and cash equivalent at end of the year	63,502	1,00,750
Net increase in cash and cash equivalents	-37,248	38,754

Here is a summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flows from Operating Activities

During FY 2024–25, the company generated net cash from operating activities of ₹2,835.81 lakhs, compared to ₹2,005.07 lakhs in FY 2023–24, reflecting a strong improvement in core business cash generation. Premium receipts increased to ₹17,040.19 lakhs from ₹14,969.95 lakhs, indicating higher business volumes. Payments to reinsurers reduced to ₹1,701.11 lakhs from ₹1,943.49 lakhs, while claim payments increased to ₹7,786.38 lakhs from ₹7,597.65 lakhs, reflecting higher claim outgo in line with business growth. Commission payments rose to ₹2,553.35 lakhs from ₹1,680.02 lakhs, and operating expenses increased moderately to ₹1,301.75 lakhs from ₹1,283.33 lakhs. Overall, operating cash flows remained strong, supported by higher premium collections.

 

Cash Flows from Investing Activities

The company reported a net cash outflow of ₹3,171.07 lakhs from investing activities in FY 2024–25, broadly in line with ₹3,156.01 lakhs outflow in FY 2023–24. Investments purchased amounted to ₹14,690.12 lakhs against sales of ₹9,700.65 lakhs, indicating net deployment of funds into investments. Investment income increased to ₹1,065.99 lakhs from ₹920.49 lakhs, reflecting improved returns. Investment in money market and liquid funds stood at ₹870.01 lakhs compared to a withdrawal of ₹558.38 lakhs in the previous year. The investing activity reflects continued focus on strengthening the investment portfolio.

 

Cash Flows from Financing Activities

Financing activities resulted in a net cash outflow of ₹37.22 lakhs during FY 2024–25, compared to an inflow of ₹1,538.48 lakhs in FY 2023–24. The company raised ₹20.78 lakhs through equity issuance compared to ₹844.87 lakhs last year. No borrowings were raised during the year, whereas ₹700.00 lakhs was raised in the previous year. Interest paid on debentures increased to ₹58.00 lakhs from ₹6.39 lakhs, leading to an overall negative financing cash flow.

 

Net Increase / (Decrease) in Cash & Cash Equivalents

The company recorded a net decrease in cash and cash equivalents of ₹372.48 lakhs during FY 2024–25, as against an increase of ₹387.54 lakhs in FY 2023–24. Cash and cash equivalents declined from ₹1,007.50 lakhs at the beginning of the year to ₹635.02 lakhs at the end of the year, mainly due to higher investment deployment and financing outflows.

Financial Ratios of SBI General Insurance Company Ltd

Particulars	2025	2024
Gross premium growth rate	10.64%	15.93%
Gross Direct Premium to Net Worth ratio	2.97	3.03
Growth rate of Net Worth (%)	2.78%	35.45%
Net Retention ratio (%)	65.42%	66.76%
Net Commission ratio  (%)	11.77%	8.48%
Expenses of Management to Gross Direct Premium ratio (%)	26.08%	22.42%
Expenses of Management to net  written Premium	39.16%	33.12%
Net incurred Claims to Net Earned Premium (%)	82.41%	85.90%
Claims Paid to Claims Provision (%)	58.88%	67.00
Combined ratio (%)	109.81%	108.23%
Investment Income Ratio	8.66%	7.96%
Technical Reserves to Net Premium ratio	1.58	1.43
Underwriting balance ratio	-0.11	0.18
Operating profit ratio (%)	1.47%	-0.98%
Liquid Assets to Liabilities ratio	0.12	0.18
Net Earnings ratio (%)	5.50%	2.82%
Return on Net worth (%)	10.88%	5.79%
Solvency Margin (Times)	2.03	2.25

Summary of the financial and operational metrics for SBI General Insurance Company Ltd for the year 2025 and 2024:

Gross Premium Growth Rate

The gross premium growth rate declined to 10.64% in 2025 from 15.93% in 2024, indicating a slowdown in business expansion. This reflects moderated market penetration and slower new business acquisition.

 

Gross Direct Premium to Net worth Ratio

The ratio improved marginally to 2.97 from 3.03, reflecting slightly better capital leverage and controlled risk exposure. The company continues to maintain a comfortable risk-bearing capacity.

 

Growth Rate of Net Worth

Net worth growth dropped sharply to 2.78% from 35.45%, indicating weak capital accretion during the year. This may impact future expansion and underwriting capacity if the trend continues.

 

Net Retention Ratio

The net retention ratio remained stable at 65.42% compared to 66.76%, reflecting a consistent reinsurance strategy. The company continues to balance growth and risk prudently.

 

Net Commission Ratio

The net commission ratio increased to 11.77% from 8.48%, indicating higher acquisition and distribution costs. This increase has put pressure on underwriting margins.

 

Expenses of Management to Gross Direct Premium

This ratio increased to 26.08% from 22.42%, reflecting rising operating expenses relative to premium growth. Cost control has emerged as a key area of concern.

 

Expenses of Management to Net Written Premium

The ratio rose to 39.16% from 33.12%, indicating deterioration in cost efficiency.
Improving operational efficiency is critical for future profitability.

 

Net Incurred Claims to Net Earned Premium

The claims ratio improved to 82.41% from 85.90%, reflecting better underwriting and claims management. This improvement supports better long-term portfolio quality.

 

Claims Paid to Claims Provision

The ratio declined to 58.88% from 67.00%, indicating stronger reserving and improved claims provisioning. The company is maintaining a more conservative claims reserve position.

 

Combined Ratio

The combined ratio increased to 109.81% from 108.23%, remaining above breakeven and indicating underwriting losses. The underwriting portfolio continues to operate at a loss.

 

Investment Income Ratio

The investment income ratio improved to 8.66% from 7.96%, supporting overall profitability.
Investment returns remain a key contributor to earnings.

 

Technical Reserves to Net Premium Ratio

The ratio increased to 1.58 from 1.43, reflecting more conservative reserving practices.
This strengthens the company’s ability to meet future claim obligations.

 

Underwriting Balance Ratio

The underwriting balance turned negative at -0.11 from 0.18, indicating a shift to underwriting loss.
Core insurance operations require corrective pricing and risk selection measures.

 

Operating Profit Ratio

The operating profit ratio improved to 1.47% from -0.98%, reflecting better operational performance.
This marks a return to operating profitability.

 

Liquid Assets to Liabilities Ratio

The liquidity ratio declined to 0.12 from 0.18, indicating weaker short-term liquidity.
Liquidity management needs closer monitoring.

 

Net Earnings Ratio

The net earnings ratio improved to 5.50% from 2.82%, reflecting higher profitability.
The company’s earnings position has strengthened year-on-year.

 

Return on Net Worth

Return on net worth improved to 10.88% from 5.79%, indicating stronger shareholder returns.
This reflects more efficient utilization of capital.

 

Solvency Margin

The solvency margin declined to 2.03 times from 2.25 times but remains comfortably above regulatory requirements. The company continues to maintain a strong capital adequacy position.