ICICI Lombard surges over 10% in two days post Q3 results

The stock hit highest level since its listing on September 2017 to Rs 872, up 7%, extending its previous day's 3.8% gain on BSE

ICICI Lombard General Insurance Company surged 7% to Rs 872, extending its previous day’s 3.8% gain on BSE, after the company reported 42.8% jump in profit before tax (PBT) at Rs 3.22 billion in December 2017 quarter (Q3FY18). A subsidiary of ICICI Bank had PBT of Rs 2.25 billion in the same quarter last fiscal.

The net profit of the company during the quarter under review grew 5.20% at Rs 2.3 billion against Rs 2 billion in the corresponding quarter of the previous fiscal.

“The results for third quarter and nine-month period ended December 2016 were impacted due to the effect of excess tax provision written back of earlier years of Rs 0.40 billion. The profit growth for Q3FY18 would be 28.9% adjusting for the tax written back”, ICICI Lombard said in a statement.

Total income rose to Rs 20 billion from Rs 18 billion in the year-ago period. During the quarter, the company's gross direct premium income increased to Rs 29.37 billion as compared to Rs 24.94 billion in the year-ago period.

The solvency ratio improved to 2.21 times as against 2.01 times in December, 2016 and higher than the minimum regulatory requirement of 1.5 times.

At 10:56 AM; the stock was trading 4% higher at Rs 846 on BSE, as compared to 0.37% rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly five-fold with a combined 769,804 shares changed hands on the NSE and BSE so far. The stock was quoting at its highest level since listing on September 27, 2017.