Even for the financial year 2017-18, the general insurer saw its net profit surge by 21.8% to Rs 1,049 crore largely due to the improvement in combined ratio.
ICICI Lombard General Insurance Company reported a net profit of Rs 228 crore for three months to March, a rise of 7.5% from the year-ago period. Even for the financial year 2017-18, the general insurer saw its net profit surge by 21.8% to Rs 1,049 crore largely due to the improvement in combined ratio.
Combined ratio improved to 98.5% in FY19 compared to 100.2% in FY18, driven by the reduction in the loss ratio to 75.3% in FY19 from 76.9% in FY18.
MD and chief executive officer Bhargav Dasgupta said, “As we look ahead, we will continue to aim at ensuring profitable growth in the long term with prudent risk selection and conservative reserving practicing, while addressing risk management need of our customers.” He added that on an annual basis, after a long time, they have gone below 100% for combined ratio.
Gross direct premium income (GDPI) increased to `14,488 crore in FY19 compared to 12,357 crore in FY18, registering a growth of 17.2% against the industry growth of 12.9%. GDPI rose to `3,485 crore in Q4FY19 compared to `2,926 crore in Q4FY18, posting a growth of 19.1% against the industry growth of 12.6%.
The insurer paid an interim dividend of `2.50 per share during the year. The board of directors has proposed a final dividend of `3.50 per share for FY19.
The payment is subject to the approval of shareholders in the company’s ensuing annual general meeting. The overall dividend for FY19, including proposed final dividend, is `6.00 per share.
On the recent regulatory announcement that there will be no increase in premiums of motor third party, Dasgupta said that if dont get the price increase, it will have a negative impact in terms of loss ratios next year. “We hope in some time we might get some price increase.” he added.
The stock of ICICI Lombard General Insurance closed at `1,092.20, marginally up by 0.49% on the BSE on Thursday.