With a combined ratio of 99.7 per cent in June quarter, ICICI Lombard General Insurance,has seen its net profit growing by 28.5 per cenr year-on -year(Y-O-Y) to Rs 398 crore during the period.
The largest private sector general insurer,that has stopped doing crop insurance business in 2019-20,has degrown its gross direct premium income (GDPI by 5.3 per cent y-o-y to Rs 3274 crore in Q1 FY2020-21.
The company has recorded a fall in premiums in two major segments like motor and health in the June quarter.The motor premium has plunged by 22 per cent y-o-y to Rs 1147 crore while its health portfolio has gone down by 5 percent y-o-y to Rs 34 crore.However,the company's fire portfolio has gone up by almost 30 per cent y-o-y to Rs 847 crore in the reporting period..
The de-growth across industry was mainly due to Covid-19 pandemic,said the company..
A multiple factors like lower claims in segments like motor and health(non-Covid -19 category) fire and crop have helped the company to register a favourable combined ratio and profitability during the June quarter, said analysts.
The company's combined ratio stood at 99.7 per cent in Q1 FY2021 compared to 100.4 per cent in Q1 FY2020 primarily driven by Covid-19 pandemic despite losses incurred due to catastrophic events. Combined ratio of the company was 98.4 per cent in Q1 FY2021 excluding the impact of cyclone Amphan and Nisarga of Rs 31 crore compared to 99.7 per cent in Q1 FY2020 excluding the impact of cyclone Fani of Rs 16 crore..
The capital gains of the company was lower by 56.1 per cent y-o-y at Rs 60 crore in Q1 FY2021 compared to Rs 138 crore in Q1 FY2020.
Profit before tax (PBT) of the company grew by 11.7 per cent y-o-y to Rs 531 crore in Q1 FY2021 from Rs 475 crore in Q1 FY2020 on account of lower capital gains.
The Solvency ratio of the company was was 2.50x at June 30, 2020 as against 2.17x at March 31, 2020 and higher than the minimum regulatory requirement of 1.50x..