 "ICICI Lombard Q4 net up 39.6% to Rs 437 cr as underwriting losses dip")
The country’s largest private sector general insurers, ICICI Lombard General Insurance, has reported a 39.6 per cent surge in net profit in the January-March quarter (Q4) of FY23, aided by a lower loss ratio and a dip in underwriting losses.
The insurer reported a profit of Rs 436.96 crore in Q4FY23, compared with Rs 312.51 crore in the year-ago period. For the whole of FY23, the company earned a net profit of Rs 1,729 crore, up 36 per cent from Rs 1,271 crore in FY22.
“In general, the performance has been positive. Last year was a year of Covid losses. The combined ratio this year has come down to 104.5 per cent and if we look at the breakdown of the combined ratio, the loss ratio for FY22 was 75.1 per cent and in FY23 it was 72.4 per cent. This has significantly aided the growth in profit numbers,” said Gopal Balachandran, Chief Financial Officer & Chief Risk Officer, ICICI Lombard General Insurance.
The company's board of directors has proposed a final dividend of Rs 5.50 per share for FY23, taking the overall dividend for FY23 to Rs 10 per share.
The insurer's gross direct premium income grew at a sluggish 6.7 per cent to Rs 4,977 crore in Q4FY23, whereas for the whole year, premium income rose by 17 per cent to Rs 21,025 crore.
Its underwriting losses shrank to Rs 250.78 crore in Q4FY23, from Rs 308.98 crore a year ago.
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The company’s combined ratio, which indicates its discipline in underwriting policies, stood at 104.2 per cent in Q4FY23, compared to 103.2 per cent a year ago. In FY23, the combined ratio stood at 104.5 per cent, significantly lower than 108.8 per cent in FY22.
Its solvency ratio stood at 2.51 as of March 31, 2023, significantly higher than the minimum regulatory requirement of 1.5.
The management said that the company’s expense of management ratio is well within the regulatory guideline when computed on the basis of gross written premium. On a full-year basis, the expense of management of the company stands at 29 per cent, which is well within the regulatory limits.