ICICI Lombard General Insurance net profit rises by 35% to Rs 415.74 crore in Q2 FY 2020-21

Bhargav Dasgupta, managing director and CEO,ICICI Lombard General Insurance said,“In terms of performance the large part of the growth in profit after tax  is also driven by better underwriting of business.We had a good quarter in terms of investment income and combined ratio. Because of our business growth, we are also seeing growth in investment income as well.” 

Bhargav Dasgupta,MD and CEO,,ICICI Lombard General Insurance

 

Mumbai:

With a higher investment income and haelthy combined ratio, ICICI Lombard General Insurance,the largest private sector  general insurer, seen its net profit rising by 35 per cent year-on-year to Rs 415.74 crore in Q2 FY 2020-21

The non-life insurer saw improved combined ratio and surge in gross direct premium income (GDPI) in the second quarter of this fiscal. 

Gross domestic premium income(GDPI) of the company grew by 8 per cent y-o-y to Rs 3,189 crore in Q2 FY2021.Excluding crop segment, GDPI of the company increased by 9.9 per cent y-o-y to Rs 3,186 crore in Q2 FY2021 This was higher than the industry growth (excluding crop segment) for Q2 FY2021 of 9.2%.

Net investment income of the general insurer with a market share of 6.70 per cent,increased by 8 per cent y-o-y to Rs 408.56 crore in the reporting period while its combined ratio stood at 99.7% in Q2 FY2021 compared to 102.6% in Q2 FY2020.

The company, has seen underwriting profits in fire, motor, and miscellaneous retail segment in Q2 FY 2020-21.

However,retail and group health portfolio, saw underwriting losses in the second quarter of this fiscal for the company. ICICI Lombard General Insurance have paid about 14,000 Covid-19 claims out of about 17,000 intimated as of now.

Bhargav Dasgupta, managing director and CEO,ICICI Lombard General Insurance said,“In terms of performance the large part of the growth in profit after tax  is also driven by better underwriting of business.We had a good quarter in terms of investment income and combined ratio. Because of our business growth, we are also seeing growth in investment income as well.” 

Excluding the impact of flood and cyclone losses of Rs 46 crore, the combined ratio was 97.9 per cent  in Q2 FY2021 as against 100.7% in Q2 FY2020 excluding the impact of cyclone and flood losses of Rs 45 crore.

 “On covid-19 claims, the whole industry is  having the same exprience.If you look at the September numbers, we had seen serious spike in claims intimated. But, from October onwards, there seems tapering-off which is a positive sign, added Bhargav

Solvency ratio for ICICI Lombard General Insurance was 2.74x at September 30, 2020 as against 2.50x at June 30, 2020 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.17x at March 31, 2020.

The stock of ICICI Lombard GI on Friday ended the day at Rs 1,257.50 up by 0.08% of Rs 1.05 on BSE.


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