With improved loss ratio, the net profit of ICICI Lombard General Insurance,the largest private sector general insurer, grew by 23.8 per cent to Rs 282 crore in Q4 FY2020 from Rs 228 crore in Q4 FY2019.

The general insurer which has been degrowing its annual premium for the last two years, at Rs1194 crore, has seen its net profit rising by 13.8 per cent in FY2020 compared to Rs1049 crore in FY2019.

“We have managed to reduce our losses as we had taken a conscious call to not to write crop business and also due to pricing improvements in segments like fire insurance.All business segments except retail health and motor insurance posted an underwriting profit for Q4,''Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance, said on Saturday while announcing the company's results

Combined ratio of the company stood at 100.4 per cent in FY2020 compared to 98.8 per cent in FY2019 primarily on account of long-term motor policies, change in product-mix and losses from catastrophic events. Combined ratio stood at 100.1 per cent in Q4 FY2020 compared to 99.0 per cent in Q4 FY2019.


Any combined ratio below 100 per cent means a general insurance company is making an underwriting profit.


The general insurer's underwriting losses has fallen to Rs29 crore in Q4FY2020 from Rs 49 crore in the year-ago period.Similarly for the FY2019-2020, the company has seen its underwriting losses dropping to Rs105crore from Rs 169 crore in FY 2019-20.  


Dasgupta said that motor insurance segment losses were higher due to the pricing competition in the own-damage segment. Underwriting loss in the motor segment stood at Rs 95.45 crore for Q4FY20 compared to loss of Rs 155.48 crore in the year-ago period.


The company's Investment income,mostly from debt instruments, was at Rs 418.37 crore, up 33 per cent, in Q4FY2020 as against Rs 312.99 in previous financial year. For the FY 2020 the investment income of the company was at Rs 1,542crore compared to Rs 1,335 crore in FY2019.The overall investment book at the end of the financial year 2019-20 stood at Rs.26300 crore, the company said.

ICICI Lombard General took an impairment hit of Rs 120 crore in Q4. The mark-to-market losses in the equity book is Rs 550 crore at end of March 31, 2020. .


Profit before tax (PBT) of the company grew by 6.2 per cent to Rs1697 crore in FY2020 from Rs 1598 crore in FY2019.The company’s PBT grew by 7.3 per cent to Rs  371 crore in Q4 FY2020 as compared to Rs 345 crore in Q4 FY2019 

Gross Direct Premium Income (GDPI) of the company stood at Rs 13,313 crore in FY2020 compared to Rs144.88 crore in FY2019, a de-growth of 8.1 per cent. Excluding crop segment, the business the company has existed, GDPI of the company increased to Rs 13,302 crore in FY2020 compared to Rs 120.36 crore in FY2019, registering a growth of 10.5 per cent. 

GDPI of the company stood at Rs3181 crore in Q4 FY2020 compared to Rs 3485 crore  in Q4 FY2019. Excluding crop segment, GDPI of the Company increased to Rs 3244 crore in Q4 FY2020 compared to Rs 3153 billion in Q4 FY2019, registering growth of 2.9 per cent. 

Return on Average Equity (ROAE) of the company was 20.8 per cent in FY2020 compared to 21.3 per cent in FY2019. ROAE was 18.8 per cent in Q4 FY2020 compared to 17.5 per cent in Q4 FY2019.


On the impacts of Caronavirus Pandemic, Dasgupta said,“We are operating in unprecedented times with pandemic spreading across the world and impacting economies and lives.Over these weeks we have had to rearrange our processes – from claim settlement to channel operators,” adding that the pandemic would likely bring disruptions in the businesses of all general insurers in the ongoing quarter.. “It will require a brave person to predict that (losses to industry), given how things are changing every second day.”