The insurer’s combined ratio, an important profitability metric for an insurance firm’s underwriting business, improved to 103.6 per cent from 104.4 per cent a year ago
ICICI Lombard General Insurance, the country’s second largest general insurer, on Tuesday reported a 22.4 per cent rise in third-quarter profit, helped by a growth in premiums and investment income.
Profit after tax rose to Rs 431 crore (nearly $52 million) for the quarter ended Dec. 31 from Rs 353 crore($42.61 million) a year earlier.
Income from investments – another key metric – rose nearly 15 per cent to Rs 666 crore in the December-quarter.
The insurer’s combined ratio, an important profitability metric for an insurance firm’s underwriting business, improved to 103.6 per cent from 104.4 per cent a year ago.
The combined ratio measures the incurred losses and operating expenses as a percentage of premium collected. It does not take into account income from investments.
The net premium income of the insurer came was at Rs 4,690 crore, beating market expectations of Rs 4,376 crore.
Total income of the insurer came in at Rs 5,003 crore in the reporting quarter, compared to Rs 4,362 crore in the corresponding quarter last year.
The company also declared an interim dividend of Rs 5 per equity share.
Motor insurance, the company’s biggest segment, contributed 50.8 per cent to the total premium earned, while its fastest growing health insurance segment posted 42.4 per cent growth.
The solvency ratio of the insurer stood at 257 percent. This is higher than the minimum regulatory requirement of 150 percent.