Mumbai: PERFORMANCE FOR THE QUARTER ENDED JUNE 30, 2020 -ICICI Lombard General Insurance Company Limited has declared, in a press release sent to our business correspondent he mentioned company performance and other activity as under
- Gross Direct Premium Income (GDPI) of the Company stood at ` 33.02 billion in Q1 FY2021 compared to ` 34.87 billion in Q1 FY2020, a de-growth of 5.3%. Excluding the crop segment, GDPI of the Company decreased to ` 32.74 billion in Q1 FY2021 compared to ` 34.88 billion in Q1 FY2020, registering a de-growth of 6.2%. The de-growth across the industry was mainly due to Covid-19 pandemic.
- The combined ratio stood at 99.7% in Q1 FY2021 compared to 100.4% in Q1 FY2020 primarily driven by Covid-19 pandemic despite losses incurred due to catastrophic events.
- The combined ratio was 98.4% in Q1 FY2021 excluding the impact of cyclone Amphan and Nisarga of ₹ 0.31 billion compared to 99.7% in Q1 FY2020 excluding the impact of cyclone Fani of ₹ 0.16 billion.
- Profit before tax (PBT) grew by 11.7% to ` 5.31 billion in Q1 FY2021 from ` 4.75 billion in Q1 FY2020 on account of lower capital gains.
- Capital gains was lower by 56.1% at ₹ 0.60 billion in Q1 FY2021 compared to ₹ 1.38 billion in Q1 FY2020.
- Consequently, Profit after tax (PAT) grew by 28.5% to ` 3.98 billion in Q1 FY2021 compared to ` 3.10 billion in Q1 FY2020.
- Return on Average Equity (ROAE) was 25.1% in Q1 FY2021 compared to 23.0% in Q1 FY2020.
Solvency ratio was 2.50x at June 30, 2020 as against 2.17x at March 31, 2020 and higher than the minimum regulatory requirement of 1.50x
Notes: Combined Ratio = (Net Incurred Claims/ Net Earned Premium) + (Management Expenses – Commission on Reinsurance)/ Net Written Premium
Management Expenses = Commission Paid Direct + Commission Paid on Reinsurance inward + Operating expenses related to the insurance business
Return on Average Equity (ROAE) = Profit After Tax / ((Opening Net Worth + Closing Net Worth)/2)
Net Worth = Share Capital + Reserves & Surplus