Reliance General Insurance Net Profits Increased by 29.5%
Updated On May 07, 2019
Reliance General Insurance witnessed a 29.5% growth in the three months to June last year. This growth is an increase in gross written premiums and a stable combined ratio.
As per media reports, gross written premium of Reliance General Insurance rose 23%, which took the market share to 8.8% among the private sector players. Reports also say that the key profitability measurement, which is the combined ratio, remained flat at 104% in the reporting period. The online sales grew at 32% growth rate.
In general, gross written premiums are the total revenue generated by an insurer from a contract. These premiums are expected to be received by the insurer before ceding commissions or deductions for reinsurance.
On the other hand, the combined ratio, which is also called “the combined ratio after policyholder dividends ratio” is a measure of profitability that an insurance company uses to check how good it is performing in its operations on a daily basis. In other words, we can say that the combined ratio helps an insurer measure the money flowing out of in its form of expenses, dividends and losses.
To calculate the combined ratio, professionals take the sum incurred expenses and losses and then divide them by the earned premium.