Combined ratio stands at 98.7% in Q3 December 2019 from 95.9% in Q3 December 2018.
ICICI Lombard General Insurance Company's net profit grew 23% to Rs 294 crore in Q3 December 2019 from Rs 239 crore in Q3 December 2018. Profit before tax (PBT) increased 8.1% to Rs 390 crore in Q3 December 2019 (Q3FY20) from Rs 361 crore in Q3 December 2018 (Q3FY2019). Total income rose 15.6% to Rs 2914.89 crore in Q3FY20 over Q3FY19.
The result was announced after market hours on Friday, 17 January 2020. Ahead of the result, shares of ICICI Lombard fell 0.17% to end at Rs 1411.35 on Friday.
Total tax expense fell 21.2% to Rs 95.81 crore in Q3FY20 from Rs 121.53 crore in Q3FY19.
GDPI (gross direct premium income) remained flat at Rs 3693 crore in Q3FY20 compared to Rs 3699 crore in Q3FY19. Direct premiums written represent the growth of a company's insurance business during a given period.
Excluding crop segment, GDPI of the company increased to Rs 3672 crore in Q3FY20 compared to Rs 3389 crore in Q3FY19, registering growth of 8.3%. The industry growth (excluding crop segment) for Q3FY20 was 10.9%.
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Combined ratio stood at 98.7% in Q3FY20 compared to 95.9% in Q3FY19. However, for the nine months ended on 31 December, combined ratio stood at 100.5% compared to 98.7% in corresponding period of the previous year, primarily on account of long-term motor policies and losses from catastrophic events in the previous quarters.
A combined ratio below 100% indicates underwriting profit, while a ratio above 100% shows that more money in claims is being paid out than is being received from premiums.
ROAE (return on average equity) was 20.3% in Q3FY20 compared to 19% in Q3FY19.
Solvency ratio of the private sector general insurer was 2.18x at 31 December 2019 as against 2.26x at 30 September 2019 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.24x at 31 March 2019.
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.
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