ICICI Lombard General Insurance, the largest private sector general insurance company in the country, at Rs 346 crore, has recorded a 22.6 per cent year-on- year growth in its net profit in Q4 FY2021.
The net profit of the company grew by 23.4 per cent to Rs 1473 crore in FY2021 compared to Rs 1194 crore in FY2020.
The company's gross domestic premium income grew by 9.4 per cent y-o-y to ₹ 3478 crore during the reporting period. The premium income of the company stood at Rs 1400.03 crore in FY2021 compared to Rs 13,313 crore in FY2020, showing growth of 5.2 per cent.
The general insurer's combined ratio, stood at 101.8 per cent in Q4 FY2021 compared to 100.1% in Q4 FY2020.
Combined ratio of the company in FY2021 stood at 99.8 per cent as compared to 100.4 per cent in FY2020.
The loss ratio of the ICICI Lombard General insurance in FY Q4 2020-21 was at 71.7 per cent in Q4 FY 2021 as against 69.9 per cent in the year ago period.
The company's profit before tax (PBT) grew by 21.4 per cent y-o-y to Rs 450 crore in Q4 FY2021 as compared to Rs 371 crore in Q4 FY2020.
Capital gains of the company were at Rs 66 crore in Q4 FY2021 compared to Rs .95 crore in Q4 FY2020.
The company, as on Marc 2021, has an investment portfolio of Rs 30,892 crore having a mix of corporate bonds at 42.7 per cent , G-Sec at 38.6 per cent and equity at 12.5 per cent.
Among the business segments, motor, marine and health portfolio saw underwriting losses in Q4 Fy 2020-21. The insurer had an underwriting loss of Rs 207.97 crore in its motor portfolio, Rs 10.18 crore in marine portfolio , Rs 8.77 crore in health (retail ) and Rs 23.4 crore in health (corporate) during the reporting period.
It has paid claims of over Rs 100 crore on account of natural catastrophe in Fy 2020-21, mainly for Cyclone Amphan that had triggered a total insurable losses of over Rs 1500 crore.
The company's share in the number of COVID-19 health claims is 5 per cent of the total general insurance industry's exposure that has seen 9,80,000 claims filed for Rs 14,000 crore.
Solvency ratio of the company was 2.90x at March 31, 2021 as against 2.76x at December 31, 2020 and higher than the minimum regulatory requirement of 1.50x.
The company's Return on Average Equity (ROAE) was 18.8 per cent in Q4 FY2021 compared to 18.8 per cent in Q4 FY2020.
The company paid an interim dividend of Rs 4.00 per share during the year. The board of directors of the company has proposed final dividend of Rs 4.00 per share for FY2021. Insurer's overall dividend for FY2021 including proposed final dividend is Rs 8.00 per share.
Addressing a press conference to announce the results, Bhargava Dasgupta, MD & CEO , ICICI Lombard said,“ We are waiting for NCLT clearance to go ahead on acquisition of Bharti AXA.General Insurance.''
He commented that FDI hike in the industry to 74 per cent will help it to grow further as it had been clamouring for the same for quite a long time. “Though, it will also result in higher competition as a good number of foreign players are likely to chip in. still, we are happy with that.''.
He also said he was in favour of a hike in motor third partt premium rates (TP) which have not been raised by the IRDAI for the last two years.