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ICICI Lombard Q4 profit rises 18% to Rs 212 crore

Income from investments rose 58% to Rs 24,132 core from Rs 15,216 crore.

, ET Bureau|
Apr 25, 2018, 07.29 PM IST
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Income from investments rose 58% to Rs 24,132 core from Rs 15,216 crore.
Mumbai: ICICI Lombard General Insurance Company reported a 18.4% rise in net profit after tax during the fourth quarter ended March 31, 2018, mainly due to higher investment income and improvement in combined ratio.

During the quarter, the company reported profit of Rs 212 crore from Rs 180 crore in the corresponding period a year ago. Its gross written premium rose 10% to Rs 2,926 crore in the quarter. The company paid an interim dividend of Rs 1.50 per share during the year. The board has proposed final dividend of Rs 2.50 per share for FY18 subject to shareholder approval.

“Main driver for PAT growth was improvement in combined ratio during the year,” said Bhargav Dasgupta MD and CEO ICICI Lombard. “Except for third party motor and crop insurance, all other segments have shown improvement in losses ratio.” Loss ratio improved to 76.9% in 2017-18 from 80.4% a year ago.

Income from investments rose 58% to Rs 24,132 core from Rs 15,216 crore. The company reported underwriting loss of Rs 9.65 crore against gain of Rs 45.26 crore during the quarter.

Driven by growth in motor and health segment, gross written premium is likely to rise about 15.2% to Rs 12,500 crore during the financial year.

Its incurred claims ratio increased to 78.5% from 75.4% a year ago. “Claims from crop in the Kharif season has come in the fourth quarter which has resulted in higher claims,” said Dasgupta.

Combined ratio for the year improved to 100.2% from 103.9% in 2016-17. Combined ratio is measure of general insurance company’s performance. The company is looking to bring down combined ratio below 100%.

With companies listing on the exchanges, underwriting discipline has come in the group health insurance policies, said Dasgupta.

Shares of the company closed 0.35% up to Rs 775.70 on the Bombay Stock Exchange.

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