The private sector general insurer ICICI Lombard General Insurance posted an 18 percent rise in its net profit at Rs 211.87 crore for the March quarter on a year-on-year basis because of an increase in the premium income and reduction in losses.
The quarterly net profit stood at Rs 179.66 crore in the year-ago period.
The insurer’s Gross Direct Premium Income (GDPI) increased by 10 pc to Rs 2,926 crore in Q4FY18,against Rs 2666 crore in the year ago period.
Excluding crop insurance, the GDPI growth was 15 percent.
Combined ratio of the company was 99.5 pc in Q4 FY2018 as compared to 97.1 pc in Q4 FY2017. The company's loss ratio was 78.5 pc in Q4 FY2018 as compared to 75.4 pc in Q4 FY2017 due to adverse crop loss experience.
Bhargav Dasgupta , MD & CEO, ICICI General Insurance, said the company has an adverse claim ratio in crop and third party motor portfolio during the reporting period.
“We had an crop portfolio of Rs 2000 crore out of which we had reinsured Rs 1500 crore. We have ended the year with 135 per cent claim ratio in the crop portfolio,’’ he said.
The company’s investment income has fallen by 15 pc to Rs 306 crore in in Q4 FY2018.
Number of policies serviced increased by 20.7 per cent to 5.91 million in Q4 FY2018 from 4.90 million in Q4 FY2017.
Gross Direct Premium Income (GDPI) of the company increased to Rs 123.57 billion in FY2018 compared to Rs ` 107.25 billion in FY2017, registering a growth of 15.2 per cent.
“The segments that saw the growth in the year gone by include Motor (15.6%), health (13.7%), Fire (23%) and Crop (10%) during the fiscal,’’ said Bhargava.
Number of policies serviced increased by 32.5 per cent to 23.5 million in FY2018 from 17.73 million in FY2017.
Combined ratio of the company improved to 100.2 per cent in FY2018 as compared to 103.9 per cent in FY2017 driven by the reduction in the loss ratio to 76.9 per cent in FY2018 from 80.4 per cent in FY2017, in spite of adverse crop loss experience.
The company’s investment income has risen by 16 pc to Rs 1482 crore in 2017-18.
The company, which has become the fourth largest general insurer during the year in terms of mobilization of the incremental premium, has investment assets were at Rs 181.93 billion at March 31, 2018 as against Rs 149.50 billion at March 31, 2017.
The Solvency ratio was 2.05x at March 31, 2018 as against 2.10x at March 31, 2017 and higher than the minimum regulatory requirement of 1.50x.
Company’s net worth was Rs 45.41 billion at March 31, 2018 as against ` 37.27 billion at March 31, 2017.
The company paid an interim dividend of Rs 1.50 per share during the year. The board has proposed final dividend of Rs 2.50 per share for FY18 subject to shareholder approval. The overall dividend for FY18 including proposed final divided is Rs 4 per share.
Providing outlook for the FY 2018-19, Dasgupta said if the National Health Protection Scheme which is expected to start during the current fiscal, will add a lot of momentum to the domestic general insurance business. The growth in the industry may exceed 30 per cent during year after the implementation of NHPC.
“NHPS pricing depends upon the good pricing general insurance company can get from the health care providers. The system should have a lot of fraud control mechanisms so that leakages can be controlled,’’ he said.