ICICI Lombard General Insurance Q2 profit up 35% at Rs415.74cr

ICICI Lombard General Insurance Q2 profit up 35% at Rs415.74cr

ICICI Lombard General Insurance reported an increase of 5.28% in top line revenues for the Sep-20 quarter at Rs2,883.40cr. The net profits for the quarter ended Sep-20 were up by 35% at Rs415.70cr and this growth was largely driven by better investment valuation.

The net margins were driven by a number of factors. The incurred claims ratio fell on a yoy basis during Sep-20 while the net retention ratio also improved on a yoy basis. This also led to the combined ratio falling below the 100% mark.

Financial highlights for Sep-20 compared yoy and sequentially

Particulars Sep-20 Quarter Growth (yoy) Growth (qoq)
Total Revenues Rs2,883.40cr +5.28% +5.63%
Net Profits Rs415.74cr +35.02% +4.43%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs9.12 Rs70.45 Rs39.71
Net Profit Margin 14.42% 20.09% 17.85%
Solvency Ratio 2.74 2.26 2.50
Incurred Claim Ratio 67.20% 74.60% 69.80%
Net Retention 76.60 71.50% 65.40%

Key takeaways from the Sep-20 quarter results

  • There has been an improvement in the debt service coverage ratio from 47.72 to 55.21 in the latest Sep-20 quarter. At the same time, the interest service coverage ratio is also up on a yoy basis.

  • Gross Direct Premium Income or GDPI for the Sep-20 quarter was up 8% on a yoy basis at Rs31.89 billion. In fact, if the impact of the floods and cyclones were excluded then the combined ratio would have fallen further from 99.8% to 98.2%.

  • The return on average equity or ROAE for the Sep-20 quarter stood at 24% compared to 22.9% in the Sep-19 quarter.