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)|
|Key Ratios||Sep-20 Quarter||Sep-19 Quarter||Jun-20 Quarter|
|Net Profit Margin||14.42%||20.09%||17.85%|
|Incurred Claim Ratio||67.20%||74.60%||69.80%|
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.