ICICI Lombard reports 8% fall in gross direct premium income

Private sector general insurer ICICI Lombard on Friday reported a 7.6 per cent drop in gross direct premium income (GDPI) at Rs 3,487 crore for June quarter compared with Rs 3,774 crore reported for the same quarter a year ago.

However, the insurer said excluding the crop segment, the GDPI increased 17.7 per cent to Rs 3,488 crore in Q1 of FY2020 from Rs 2,964 crore in the year-ago period. This was higher than the industry growth (excluding crop) rate of 13.6 per cent.

Combined ratio -- a measure of an insurance company's profitability expressed in terms of the ratio of total costs divided by total revenue -- stood at 100.4 per cent in Q1 against 98.8 per cent in Q1 FY2019, primarily on account of long-term motor policies and losses from cyclone Fani. Excluding the impact of cyclone Fani of Rs 16 crore, the ratio was 99.7 per cent higher.


The company's profit before tax (PBT) grew 7.2 per cent to Rs 475 crore in Q1 of FY2020 from Rs 443 crore in the year-ago period on account of lower capital gains. Capital gains was 29.6 per cent lower at Rs 138 crore in Q1 of FY2020 compared wit Rs 196 crore in Q1 of FY2019

Profit after tax (PAT) grew 7.1 per cent to Rs 310 crore in Q1 of FY2020 against Rs 289 crore in Q1 of FY2019. Return on average equity (ROAE) was 23 per cent in Q1 of FY2020 compared with 24.7 per cent in Q1 of FY2019. The insurer's solvency ratio stood at 2.20 times as of June 30, 2019 against 2.24 times as of March 31, 2019 and higher than the minimum regulatory requirement of 1.50 times.