ICICI Gen's Q1 net drops 61 % to Rs 152 crore on higher Covid-19 claims
The largest private sector general insurer has also seen its combined ratio deteriorating to 121.3 per cent in Q1 FY2022 compared to 99.7 per cent in Q1 FY2021
Mumbai, July 22:
With Rs 602 crore of Covid -19 claim outgo, the net profit of ICICI Lombard General Insurance has plunged by 61 per cent year on year to Rs 152 crore in Q1 FY2022 as compared to Rs 398 crore in Q1 FY2021.
The largest private sector general insurer has also seen its combined ratio, a key profitability gauge for general insurers,severely deteriorating to 121.3 per cent in Q1 FY2022 compared to 99.7 per cent in Q1 FY2021
There has been an impact of Covid related health claims at Rs 602 crore for Q12022 (Rs 20 crore for Q12021), said the company.
Loss ratio in the company's `Health, Travel & personal accident (PA)' portfolio more than doubled to 153 per cent in the reporting quarter. Further the general insurer has reduced its growth of individual health indemnity business that grew by 20.4 per cent y-o-y to Rs 987 crore in Q12022 ( 25.2 per cent in Q12021).
Loss ratio in its `Motor Portfolio', that has almost remained flat in premium growth, at Rs 1170 crore, during Q1 Fy 2021-22, was at 70 per cent, In Q1 Fy 2020-21.The company, at Rs 1147 crore, had recorded a negative growth of 22.4 per cent in Q1 FY 2020-21 in its motor portfolio. .
The company had a net impact of cyclone losses of Rs 380 crore for Q12022 as against Rs 350 crore for Q12021.
The general insurer’s gross direct premium income stood at Rs 3733 crore in Q1 FY2022 compared to Rs 3302 crore in Q1 FY2021, registering a y-o-y growth of 13 per cent .
The investment income of the company increased to Rs 244 crore in Q1 FY2022 compared to Rs 61 crore billion in Q1 FY2021.
Solvency ratio of the company was 2.76x at June 30, 2021 as against 2.90x at March 31, 2021.
Ahead of the earnings, the ICICI Lombard counter rallied 4.34 per cent to Rs 1,542 on the BSE whose benchmark Sensex was on a song, surging 1.22 per cent or over 638 points after three days of sell-off