ICICI Lombard General Insurance, the largest private sector general insurer, has recorded a 35 per cent jump in its profit after tax to Rs 289 crore in Q1 FY2019 as against Rs 214 crore in Q1FY2018.
Profit before tax of the company grew by 47.5 per cent to Rs 443crore in Q1 FY2019 compared to Rs 300 crore in 01 FY2018.
Gross Direct Premium Income (GDPI} of the general insurer increased by 13.7 per cent to Rs 3774 crore in 01 FY2019 compared to Rs 3321 billion in Q1 FY2018. ICICI Lombard has increased its market share to 10.1 per cent in 01 FV2019 compared to 10.0 per cent in Q1 FY2018.
With underwriting losses of Rs 64 cr(Rs155 cr in Q1FY2018),the company’s `technical' Combined ratio, the most crucial financial parameter of a general insurance company, improved to 98.8 per cent in 01 FY2019 from 102.4 per cent in 01 FV2018, said company official.
This was driven by reduction in the loss ratio to 76.9 per cent in 01 FY2019 from 78.1 per cent in 01 FY2018 as well as decline in the expense ratio,said Bhargav Dasgupta, MD & CEO , ICICI Lombard General Insurance.
“We incurred total claims of Rs 1419 crore during Q1 FY2019 as against Rs 1197 crore in the year ago period,Overall loss ratio has increased at the company. We are careful about some of the group health portfolio and large-ticket policies in particular,’’ said Dasgupta.
.“The industry has grown at a CAGR of 17 per cent for 18 years. I do believe that the industry will continue to grow at 15-20 per cent annually for next 5-10 years. At ICICI Lombard,our endeavor will be to make it over 20 per cent in future. We will be strengthening our position in tier-3 & 4 cities. Also, we are looking at increasing the sales force,’’ said Dasgupta.
ICICI Lombard General Insurance had an investment income Rs 507 cr in the reporting period as against Rs 455 cr in the year-ago period.
The general insurer’s retail to corporate ratio was 60:40 without crop portfolio and 80:20 with the crop business.
The company’s crop insurance business grew by 12 per cent while industry’s overall crop business grew by 73 per cent, during Q1 FY2019.
“ We bid for the crop business at appropriate price. But, if someone bids at less than us then we can’t bag the bid. Our growth was muted on this front during the period as we are careful,’’ said Dasgupta.
The health insurance portfolio of the at ICICI Lombard grew by 26.4 per cent as against the industry growth of 14.5 per cent during the reporting period.
The company has approved the grant of regular as well as one- time special stock options of 2,529,700 to eligible employees including wholetime directors of the company.