ICICI Lombard General Insurance registered a 43.6 per cent growth in profit after tax (PAT) for the quarter ended September 30, 2018, to Rs 2.93 billion, as compared to Rs 2.04 billion in the corresponding quarter of the previous financial year.

The gross direct premium income for the general insurer grew 11.3 per cent from Rs 31.73 billion in Q2FY18 to Rs 35.3 billion at the end of Q2FY19. Motor insurance continues to be the largest contributor to the company's premium revenue. The segment registered Rs 12.1 billion in net premium earned (NPE) in Q2, as against Rs 10 billion in the last fiscal.

The NPE for Crop insurance rose to Rs 2.86 billion, compared to Rs 2.51 billion in Q2FY18. In the health portfolio, premium from government-based schemes and the retail segment declined.

In the case of government health policies issued, NPE decline from Rs 103 million in Q2FY18 to Rs 98.7 million in Q2FY19. Retail health policy NPE also declined from Rs 1.69 billion to Rs 1.44 billion this fiscal.

However, the corporate health portfolio grew 82.5 per cent to Rs 3.65 billion from Rs 2 billion last year. Combined ratio improved to 100.1 per cent at the end of H1FY19 as against 102.7 per cent in H1FY18.

Underwriting loss improved from Rs 850 million in Q2FY18 to Rs 214.9 million at the end of Q2FY19.

Expense ratio declined by 300 basis points from 22.9 per cent in Q2FY18 to 19.2 per cent in Q2FY19. The company inherited Rs 250 million in losses, as a result of the large scale flooding in Kerala in August. Not accounting for the claims incurred by the company in the aftermath of the floods, the combined ratio stood at 99.9 per cent. Interest coverage ratio surged from 30.25 per cent in Q2FY18 to 45.48 per cent in Q2FY19.

In filings with the stock exchanges, the company appointed Lalita D Gupte has non-executive chairperson of the board of directors, with immediate effect. Further, Vinod Mahajan has been appointed as Chief Investment Officer of the general insurer.

Lombard states that its profit before tax and PAT include a one-off impact of Rs 5.8 billion, that was recovered on account of doubtful reinsurance recoverable, already provided for in earlier years.

Solvency Ratio as of September 30, 2018, stood at 2.10x whereas in the corresponding quarter last year, it stood at 2.18x. The regulator’s requirement of minimum solvency ratio for an insurance company is 1.50x. ICICI Lombard’s board has declared an interim dividend of Rs 2.5 per share for H1FY19.