The country’s largest private sector general insurer, ICICI Lombard General Insurance, has reported a marginal 1.28 per cent increase in net profit to Rs 318 crore in the October-December quarter (Q3FY22), missing street estimates. Analysts at Bloomberg had estimated a net profit of Rs 402.50 crore. Sequentially, the net profit was down 29 per cent.
It’s gross direct premium income rose 16 per cent to Rs 4,699 crore in the reporting quarter as against Rs 4,034 crore in the corresponding period of previous financial year and investment income saw a 20 per cent growth to Rs 532.23 crore.
However, its underwriting losses increased in Q3FY22 to Rs 269.19 crore as against Rs 100.73 crore in the previous quarter and Rs 135.41 crore in Q3FY21. Consequently, the combined ratio of the insurer, which is a measure of core profitability, for the quarter stood at 104.5 per cent as against 97.9 per cent in Q3FY21.
“In the current quarter, we are reporting combined numbers with the book that has come in from Bharti Axa general insurance. We have always been saying on a proforma basis, their combined ratio and ours put together was around 104 per cent. From now on, we will have to see how we will see the synergy benefits so that combined ratio comes under control”, said Bhargav Dasgupta, MD&CEO, ICICI Lombard General Insurance.
“Generally, there has been a very aggressive market share grabbing approach followed by some of the players to show growth and that has impacted our overall pricing and cost structure”, he added.
Solvency ratio of the insurer was 2.45x at the end of December quarter as against 2.49x at the end of September quarter.
