ICICI Lombard Q1 net rises 7.1% to Rs 310 crore

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Published: July 20, 2019 1:31:35 AM

In terms of product portfolio, motor OD (own damage) and motor third party (TP) comprise 24% and 19%, respectively. Health and PA constitute 26% in Q1.

In the conference call post Q1 results, Dasgupta said, the GDPI growth was primarily driven by the focus on preferred segments such as fire, marine, motor, liability and health.

ICICI Lombard General Insurance Company reported a net profit of `310 crore for the first quarter of current fiscal, a rise of 7.1% over the year-ago period. The rise in the profit was largely due to higher investment income and better underwriting in the previous quarter.
Gross direct premium income (GDPI) of the company stood at `3,487 crore in Q1, compared with `3,774 crore in the same quarter last year, a fall of 7.6%. ICICI Lombard said excluding the crop segment, the GDPI increased to `3,488 crore, compared with `2,964 crore in Q1FY19, registering a growth of 17.7%. This was higher than the industry growth (excluding crop segment) of 13.6%.

Bhargav Dasgupta, MD and CEO, said: “If you look at our business mix this year for the first quarter, we have not won any crop insurance tender and this is largely been in line with our policy to focus more on granular business going forward. So if you look at the number without crop insurance, the growth has been 17.7%.”

Investment income for the first quarter stood at `527 crore, against `507 crore in corresponding previous quarter.
The combined ratio stood at 100.4% in Q1FY20 from 98.8% in the same quarter last year, primarily on account of long-term motor policies and losses from cyclone Fani. “Combined ratio was 99.7% in Q1 FY2020 excluding the impact of cyclone Fani of Rs 16 crore,” the company said in a release.

In terms of product portfolio, motor OD (own damage) and motor third party (TP) comprise 24% and 19%, respectively. Health and PA constitute 26% in Q1.

In the conference call post Q1 results, Dasgupta said, the GDPI growth was primarily driven by the focus on preferred segments such as fire, marine, motor, liability and health. Consequent to the increase in minimum prescribed rates for certain occupancies under fire segments, this segment registered a robust GDPI growth of 67.3% in Q1, thereby aiding the GDPI growth of our property & casualty segment.

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