ICICI Lombard posts Rs 398-crore net profit in Q1

According to a press release issued by the company, the de-growth across the industry was mainly due to Covid-19 pandemic.

ICICI Lombard General Insurance reported a net profit of Rs 398 crore for the first quarter of the current fiscal, compared with Rs 310 crore in the corresponding quarter last year, a rise of 28.5%. Gross direct premiums income (GDPI) came down in Q1, but the company witnessed improved underwriting performance.

GDPI of ICICI Lombard General Insurance stood at Rs 3,302 crore in Q1, compared with Rs 3,487 crore in the same period last year, down 5.3%. However, excluding the crop segment, it decreased to Rs 3,274 crore in Q1FY21, compared with Rs 3,488 crore in Q1FY20, registering a de-growth of 6.2%.

According to a press release issued by the company, the de-growth across the industry was mainly due to Covid-19 pandemic. However, the underwriting profit stood at Rs 38.16 crore, compared to an underwriting loss of Rs 44.93 crore for the quarter ended June 2019.

According to the filings with the BSE, ICICI Lombard General Insurance has seen underwriting profits in motor and miscellaneous group and corporate segments in first quarter of current fiscal. When claims paid are less than the premium collected, an insurance company reports underwriting profits.

The combined ratio of the company stood at 99.7% in Q1, compared to 100.4% in the year-ago period, primarily driven by Covid-19 despite losses incurred due to catastrophic events. “Combined ratio was 98.4% in Q1 FY2021 excluding the impact of cyclone Amphan and Nisarga of Rs 31 crore, compared to 99.7% in Q1 FY2020 excluding the impact of cyclone Fani of Rs 16 crore,” the release said.