Mumbai:
ICICI Lombard General Insurance has seen its profit after tax (PAT) growing by 6.1 per cent to Rs 618 crore in H1 FY2020 as against Rs 582 crore in H1 FY2019
The private sector general insurer’s PAT grew by 5 per cent to Rs 308 crore in Q2 FY2020 from Rs 293 crore in Q2 FY2019.
Further,the company’s PAT for H1 and Q2 of the previous year had the benefit of one off reinsurance recovery of ` 0.58 billion. Excluding the one off impact, PAT grew by 13.4 per cent in H1 FY2020 and 20.6 per cent in Q2 FY2020.
The Board of Directors of the company has declared interim dividend of Rs 3.50 per share for H1 FY2020.
Gross Direct Premium Income (GDPI) of the Company stood at Rs 6440 crore in H1 FY2020 compared to Rs 7305 crore in H1 FY2019, a de-growth of 11.8 per cent. Excluding crop segment, GDPI of the company increased to Rs 6386 crore in H1 FY2020 compared to Rs 54.95 billion in H1 FY2019, registering a growth of 16.2 per cent.
Bhargav Dasgupta, Managing Director & Chief Executive Officer of ICICI Lombard General Insurance said, “Crop insurance is a good business but what has happened in the market in our view is that re-insurance terms have turned completely adverse to insurance companies and it doesn't make sense. Also the rates on the ground were aggressive and commissions paid by the reinsurers were not remunerative. We also want focus more on underwriting, so that's the reason we have stayed away from crop insurance.May be when situation improves, we will return to the market”
GDPI of the company stood at Rs 2953 crore in Q2 FY2020 compared to Rs 35.30 billion in Q2 FY2019, a de-growth of 16.4 per cent.
The company’s combined ratio stood at 101.5 per cent in H1 FY2020 compared to 100.1 per cent in H1 FY2019 primarily on account of long-term motor policies and losses from catastrophic events in various states (estimated to be Rs 61 crore).
Excluding the impact of catastrophes,the combined ratio was 100.1 per cent in H1 FY2020 as against 99.5 per cent in H1 FY2019. Combined ratio of the company stood at 102.6 per cent in Q2 FY2020 compared to 101.1 per cent in Q2 FY2019. Excluding the impact of catastrophes, the combined ratio was 100.6 per cent in Q2 FY2020 as against 99.9 per cent in Q2 FY2019.
The company’s profit before tax (PBT) grew by 4.9 per cent to Rs 936 crore in H1 FY2020 from Rs 892 crore in H1 FY2019 whereas PBT grew by 2.7 per cent to Rs 461 crore in Q2 FY2020 compared to Rs 449 crore in Q2 FY2019.
The capital gains of the company was lower at Rs 207 crore in H1 FY2020 compared to Rs 321 core in H1 FY2019. The company’s capital gains was lower at Rs 69 crore in Q2 FY2020 compared to Rs 125 crore in Q2 FY2019.
Consequently,the company’s Return on Average Equity (ROAE) was 22.3 per cent in H1 FY2020 compared to 24.4 per cent in H1 FY2019 while ROAE was 22 per cent in Q2 FY2020 compared to 23.9 per cent in Q2 FY2019. The company’s Solvency ratio was 2.26x at September 30, 2019 as against 2.20x at June 30, 2019 and higher than the minimum regulatory requirement of 1.50x. 2.24x at March 31, 2019.