ICICI General Insurance net profit at Rs 308 cr, up 5% in Q2 2019-20

The company’s combined ratio stood at 101.5 per cent in H1 FY2020 compared to 100.1 per cent  in H1 FY2019 primarily on account of long-term motor policies and losses from catastrophic events in various states (estimated to be Rs  61 crore). 

Bhargav Dasgupta, MD &CEO, ICICI Lombard General Insurance

 

Mumbai:

ICICI Lombard General Insurance has seen its profit after tax (PAT) growing  by 6.1 per cent to  Rs 618 crore  in H1 FY2020 as against Rs  582 crore in H1 FY2019 
 

The private sector general insurer’s  PAT grew by 5 per cent to Rs 308 crore in Q2 FY2020 from Rs  293 crore  in Q2 FY2019.

 
Further,the company’s  PAT for H1 and Q2 of the previous year had the benefit of one off reinsurance recovery of ` 0.58 billion. Excluding the one off impact, PAT grew by 13.4 per cent in H1 FY2020 and 20.6 per cent in Q2 FY2020.

 

The Board of Directors of the company has declared interim dividend of Rs 3.50 per share for H1 FY2020.

 

Gross Direct Premium Income (GDPI) of the Company stood at Rs 6440 crore in H1 FY2020 compared to Rs  7305 crore in H1 FY2019, a de-growth of 11.8 per cent. Excluding crop segment, GDPI of the company increased to Rs  6386 crore in H1 FY2020 compared to Rs  54.95 billion in H1 FY2019, registering a growth of 16.2 per cent.

 

Bhargav Dasgupta, Managing Director & Chief Executive Officer of ICICI Lombard General Insurance said, “Crop insurance is a good business but what has happened in the market in our view is that re-insurance terms have turned completely adverse to insurance companies and it doesn't make sense. Also the rates on the ground were aggressive and commissions paid by the reinsurers were not remunerative. We also want focus more on underwriting, so that's the reason we have stayed away from crop insurance.May be when situation improves, we will return to the market”

 

GDPI of the company stood at Rs 2953  crore in Q2 FY2020 compared to Rs  35.30 billion in Q2 FY2019, a de-growth of 16.4 per cent.

 
The company’s combined ratio stood at 101.5 per cent in H1 FY2020 compared to 100.1 per cent  in H1 FY2019 primarily on account of long-term motor policies and losses from catastrophic events in various states (estimated to be Rs  61 crore). 

 

Excluding the impact of catastrophes,the combined ratio was 100.1 per cent in H1 FY2020 as against 99.5 per cent in H1 FY2019. Combined ratio of the company stood at 102.6 per cent in Q2 FY2020 compared to 101.1 per cent  in Q2 FY2019. Excluding the impact of catastrophes, the combined ratio was 100.6 per cent in Q2 FY2020 as against 99.9 per cent in Q2 FY2019.

 

The company’s profit before tax (PBT) grew by 4.9 per cent to Rs  936 crore in H1 FY2020 from Rs  892 crore in H1 FY2019 whereas PBT grew by 2.7 per cent  to Rs  461 crore  in Q2 FY2020 compared to Rs  449 crore  in Q2 FY2019. 

 

The capital gains of the company was lower at Rs  207 crore in H1 FY2020 compared to Rs  321 core  in H1 FY2019. The company’s capital gains was lower at Rs  69 crore  in Q2 FY2020 compared to Rs  125 crore in Q2 FY2019.

 

 Consequently,the company’s Return on Average Equity (ROAE) was 22.3 per cent in H1 FY2020 compared to 24.4 per cent  in H1 FY2019 while ROAE was 22 per cent in Q2 FY2020 compared to 23.9 per cent in Q2 FY2019. The company’s  Solvency ratio was 2.26x at September 30, 2019 as against 2.20x at June 30, 2019 and higher than the minimum regulatory requirement of 1.50x. 2.24x at March 31, 2019.


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