ICICI Lombard General Insurance Company reported a 28.5% rise in net profit to Rs 398.1 crore in Q1 June 2020 compared with Rs 309.81 crore in Q1 June 2019.
The insurance company's total income rose nearly 2% to Rs 2844.17 crore in Q1 June 2020 compared with Rs 2791.08 crore in Q1 June 2019. The result was announced after market hours yesterday, 17 July 2020.Profit before tax stood at Rs 531.04 crore in Q1 June 2020, rising 11.7% from Rs 475 crore in Q1 June 2019. Tax expense declined 19.7% year on year to Rs 132.94 crore in Q1 June 2020.
Gross Direct Premium Income (GDPI) of the company stood at Rs 3302 crore in Q1 June 2021 compared to Rs 3487 crore in Q1 June 2019, a de-growth of 5.3%. Excluding crop segment, GDPI of the company decreased to Rs 3274 crore in Q1 June 2020 compared to Rs 3488 crore in Q1 June 2019, registering a de-growth of 6.2%. The degrowth across industry was mainly due to Covid-19 pandemic.
Gross premium written declined 4.67% to Rs 3394.21 crore in Q1 June 2020 over Q1 June 2019. Net premium written fell 7% to Rs 2219.13 crore in Q1 June 2020 over Q1 June 2019. Net premium earned rose 3.5% to Rs 2323.84 crore in Q1 June 2020 over Q1 June 2019.
Combined ratio stood at 99.7% in Q1 FY21 compared to 100.4% in Q1 FY20 primarily driven by Covid-19 pandemic despite losses incurred due to catastrophic events.
The insurance company's Return on Average Equity (ROAE) was 25.1% in Q1 FY21 compared to 23% in Q1 FY20. Solvency ratio was 2.50x at the end of 30 June 2020 as against 2.17x at 31 March 2020 and higher than the minimum regulatory requirement of 1.50x.
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ICICI Lombard General Insurance Company operates as a non-life insurer. The company offers motor, health, travel, business, personal accident, and home insurance, as well as claim settlements and renewals services.
Shares of ICICI Lombard General Insurance rose 3.15% at Rs 1288.80 on Friday, 17 July 2020.
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