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