| ICICI Lombard General Insurance Company has posted sharp 35% jump in the net profit to Rs 415.74 crore in the quarter ended June 2020 (Q2FY2021). PBT moved 20% to Rs 554.57 crore in Q2FY2021 driven by improvement in loss ratio to 67.2% in Q2FY2021 from 74.6% in Q2FY2020, while growth in the net profit was further aided by dip in effective tax rate to 25.0% in Q2FY2021 from 33.2% in Q2FY2020.
Gross Direct Premium Income (GDPI) of the Company stood at Rs 3189 crore in Q2FY2021 compared to Rs 2953 crore in Q2FY2020, a growth of 8.0%. Excluding crop segment, GDPI of the Company increased to Rs 3186 crore in Q2FY2021 compared to Rs 2898 crore in Q2FY2020, registering a growth of 9.9%. This was higher than the industry growth (excluding crop segment) for Q2FY2021 of 9.2%.
Combined ratio stood at 99.7% in Q2FY2021 compared to 102.6% in Q2FY2020. Excluding the impact of flood and cyclone losses of Rs 46 crore, the combined ratio was 97.9% in Q2FY2021 as against 100.7% in Q2FY2020 excluding the impact of cyclone and flood losses of Rs 45 crore.
Capital gains were at Rs 124 crore in Q2FY2021 compared to Rs 69 crore in Q2FY2020.
Investment assets increased 22% to Rs 29162 crore end September 2020, as compared to Rs 23999 crore end September 2019. Investment leverage (net of borrowings) was 4.13x end September 2020 as compared to 4.09x end September 2019. Investment income increased to Rs 532.2 crore in Q2FY2021 as compared to Rs 497.2 crore in Q2FY2020.
Solvency ratio was 2.74x at September 30, 2020 as against 2.50x at June 30, 2020 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.17x at March 31, 2020.
ROAE was 24.7% in Q2FY2021 compared to 22.0% in Q2FY2020.
Book value of the company stood at Rs 152.9 per share end September 2020. Book value including fair value change account (shareholders funds) stood at Rs 154.0 per share end September 2020.
Financial Performance H1FY2021
Gross Direct Premium Income (GDPI) of the Company stood at Rs 6491 crore in H1FY2021 compared to Rs 6440 crore in H1FY2020, a growth of 0.8%. Excluding crop segment, GDPI of the Company increased to Rs 6459 crore in H1FY2021 compared to Rs 6386 crore in H1FY2020, registering a growth of 1.1%. This was lower than the industry growth (excluding crop segment) of 2.8%. The industry growth has been muted due to Covid-19 pandemic.
Combined ratio stood at 99.8% in H1FY2021 compared to 101.5% in H1FY2020 despite losses incurred from cyclone and floods. Excluding the impact of cyclone and flood losses of Rs 77 crore, the combined ratio was 98.2% in H1FY2021 as against 100.1% in H1FY2020 excluding the impact of cyclone and flood losses of Rs 61 crore.
Profit before tax (PBT) grew by 16% to Rs 1086 crore in H1FY2021 from Rs 936 crore in H1FY2020.
Capital gains were lower at Rs 184 crore in H1FY2021 compared to Rs 207 crore in H1FY2020.
Consequently, Profit after tax (PAT) grew by 32% to Rs 814 crore in H1FY2021 as against Rs 618 crore in H1FY2020.
Return on Average Equity (ROAE) was 24.9% in H1FY2021 compared to 22.3% in H1FY2020. |