ICICI Lombard PBT vaults to Rs 42.2 cr

ICICI Lombard General Insurance yesterday reported a rise of 909 per cent in profit before tax at Rs 42.2 crore for fiscal 2004 against Rs 4.2 crore in the preceding year.

Gross premiums underwritten during 2003-04 rose by 144 per cent to Rs 506.7 crore (Rs 207.9 crore) last year. The private sector insurer has mopped up over Rs 100 crore in April 2004 on renewal of corporate risks.

The profitability has been attributed to the quality of underwriting, which resulted in an underwriting profit of Rs 16.8 crore compared with an underwriting loss of Rs 10.7 crore last year.

Moreover, the expense ratio "" including commission and brokerage during the year "" has dropped to 18 per cent compared with 20 per cent in 2002-03, which said Bakhshi, is among the lowest in the general insurance industry.

"Our customer-oriented approach through innovative risk management solutions and a salient technology platform, strengthening our distribution network, well-diversified business across various classes, industries and geographies has resulted in ICICI Lombard emerging as the number 1 private sector general insurance company in the country with a market share of over 22 per cent among private players," said Sandeep Bakhshi, CEO and managing director.

The ability of ICICI Lombard to settle large claims has helped it bag corporate business.

ICICI Lombard's claims settlement ratio stood at 89 per cent, with the average claim settlement period having been reduced to 26 days on the 26,000 claims reported during fiscal 2004.

The company's branch expansion to 63 locations from 35 last year, manned by over 600 employees, has helped ICICI Lombard reaching out and cover 2.6 crores individuals, as well as 3,000 corporate clients.