ICICI Lombard Q1 net dives 62% on Covid claims

By: |
July 23, 2021 2:00 AM

Gross premium written during the April-June period grew 12.18% y-o-y to Rs 3,807.56 crore as against Rs 3,394.21 crore in the same period last year.

“Combined ratio stood at 121.3% in Q1FY2022 compared to 99.7% in Q1FY2021, primarily driven by Covid-19 pandemic during the quarter. The combined ratio includes Covid-19 impact on health book of Rs 6.02 billion in Q1FY2022 as against Rs 0.20 billion in Q1FY2021 and Rs 3.39 billion in FY2021,” the filing said.“Combined ratio stood at 121.3% in Q1FY2022 compared to 99.7% in Q1FY2021, primarily driven by Covid-19 pandemic during the quarter. The combined ratio includes Covid-19 impact on health book of Rs 6.02 billion in Q1FY2022 as against Rs 0.20 billion in Q1FY2021 and Rs 3.39 billion in FY2021,” the filing said.

ICICI Lombard General Insurance on Thursday said its net profit for the first quarter of this fiscal fell 61.91% year-on-year to Rs 151.63 crore as Covid-related health claims stood at a whopping Rs 602 crore. The net profit for the year-ago period was Rs 398.10 crore. During Q1FY21, the impact of the pandemic-related health claims was only Rs 20 crore.

“During the quarter ended June 30, 2021 the company has witnessed significantly higher number of reported Covid 19 health claims in second wave in comparison with the wave one. Accordingly, the company has made necessary provision required for these claims. The company will continue to closely monitor any changes to the estimates basis future economic conditions,” the general insurer said in a stock exchange filing.

Gross premium written during the April-June period grew 12.18% y-o-y to Rs 3,807.56 crore as against Rs 3,394.21 crore in the same period last year.

Gross direct premium income (GDPI) stood at Rs 3,733 crore in Q1FY22 compared to Rs 3,302 crore in Q1FY21, a growth of 13.0%. “This was in line with the industry growth,” ICICI Lombard said.

“Combined ratio stood at 121.3% in Q1FY2022 compared to 99.7% in Q1FY2021, primarily driven by Covid-19 pandemic during the quarter. The combined ratio includes Covid-19 impact on health book of Rs 6.02 billion in Q1FY2022 as against Rs 0.20 billion in Q1FY2021 and Rs 3.39 billion in FY2021,” the filing said.

The non-life insurer’s solvency ratio was 2.76x at June 30, 2021 as against 2.90x at March 31, 2021. It was higher than the minimum regulatory requirement of 1.50x.

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