ICICI Lombard General Insurance today reported a 5.20 per cent increase in profit after tax (PAT) at Rs 231.76 crore for the quarter ended December 31, 2017.A subsidiary of ICICI Bank, the general insurance firm had earned a PAT of Rs 220.30 crore in the same quarter of the previous fiscal.This is the second quarterly result of the company after going public in September last year.
During the quarter, the company's gross premium written rose to Rs 3,001.53 crore as compared to Rs 2,542.32 crore in the year-ago period.Gross Direct Premium Income (GDPI) of the company increased to Rs 2937 crores in Q3 FY2018 compared to Rs 2494 crores in Q3 FY2017, registering a growth of 17.8%.
Profit before tax (PBT) of the company for Q3 FY2018 grew at 42.8% to Rs 322 crores compared to Rs 225 crores in the year-ago period.The company had an underwriting losses of Rs 28 crore in Q3 FY 2018 as against an underwriting losses of Rs 119 crore in the corresponding period of the previous fiscal. The combined ratio (CR) of the company had fallen to 96 per cent in Q3FY 2018 from 106.6 per cent in the year-ago period.
With a total investment assets of Rs 17318 crores at December 31, 2017,the general insurer’s investment income for Q3 FY 2018 increased to Rs 350 crores from Rs 344 crores in the corresponding period of the previous fiscal.
The company's PAT of Q3 FY2017 and 9M FY2017 included effect of excess tax provision written back of earlier years of Rs 40 crore.Total income rose to Rs 2,019.77 crore from Rs 1,842.93 crore in the year-ago period, said ICICI Lombard General Insurance.
During the quarter, the company reported provision of tax of Rs 90.59 crore as against Rs 5.44 crore in the year-ago period.The results for third quarter and nine-month period ended December 2016 were impacted due to effect of excess tax provision written back of earlier years.Also, the solvency ratio improved to 2.21 times as against 2.01 times in December, 2016.The regulatory requirement is 1.50 times.
Performance in the first nine months
The gross written premium of the company increased by 16.7 per cent to Rs 9630 crore in 9M FY2018 compared to Rs 82.50 billion in 9M FY2017. Motor portfolio grew by 16.4% in gross written premium amounting to Rs 3953 crore in 9M FY2018 compared to Rs 3399 crore in 9M FY2017.Retail, Corporate and Government (Govt) Sponsored health policies contributed 57.3 per cent 39.8 per cent and 2.9 per cent respectively of health GDPI in 9M FY2018 compared to 50.8 per cent , 32 pr cent and 17.2per cent respectively of health GDPI in 9M FY2017.Growth in retail health was 17.3 per cent in 9M FY 2018.
The crop insurance portfolio of the company recorded a growth of 17.5% in gross written premium amounting to Rs 1882 crore in 9M FY2018 compared to Rs 16.01 crore in 9M FY 2017. With a net worth of Rs 4329 crore at December 31, 2017, the company's return on average equity (ROE) of 22.4 per cent in Q3 FY2018 compared to 20.4 per cent in Q3 FY2017.Claims incurred increased by 3.6% to Rs 3888 crores in 9M FY2018 compared to Rs 3754 crore in 9M FY2017 due to improvement in loss ratio to 76.3% in 9M FY2018 as compared to 82.1% in 9MFY2017.