ICICI Lombard General Insurance Company Limited reports Q2FY21 earnings

ICICI Lombard General Insurance Company Limited has announced the financial results for the period ended September 30, 2020.

Gross Direct Premium Income (GDPI) of the Company stood at Rs. 64.91 billion in H1 FY2021 compared to Rs. 64.40 billion in H1 FY2020, a growth of 0.8%. Excluding crop segment, GDPI of the Company increased to Rs. 64.59 billion in H1 FY2021 compared to Rs. 63.86 billion in H1 FY2020, registering a growth of 1.1%. This was lower than the industry growth (excluding crop segment) of 2.8%. The industry growth has been muted due to Covid-19 pandemic.

- GDPI of the Company stood at Rs. 31.89 billion in Q2 FY2021 compared to Rs. 29.53 billion in Q2 FY2020, a growth of 8.0%. Excluding crop segment, GDPI of the Company increased to Rs. 31.86 billion in Q2 FY2021 compared to Rs. 28.98 billion in Q2 FY2020, registering a growth of 9.9%. This was higher than the industry growth (excluding crop segment) for Q2 FY2021 of 9.2%.

- Combined ratio stood at 99.8% in H1 FY2021 compared to 101.5% in H1 FY2020 despite losses incurred from cyclone and floods. Excluding the impact of cyclone and flood losses of ₹ 0.77 billion, the combined ratio was 98.2% in H1 FY2021 as against 100.1% in H1 FY2020 excluding the impact of cyclone and flood losses of ₹ 0.61 billion.

- Combined ratio stood at 99.7% in Q2 FY2021 compared to 102.6% in Q2 FY2020. Excluding the impact of flood and cyclone losses of ₹ 0.46 billion, the combined ratio was 97.9% in Q2 FY2021 as against 100.7% in Q2 FY2020 excluding the impact of cyclone and flood losses of ₹ 0.45 billion.

- Profit before tax (PBT) grew by 15.9% to Rs. 10.86 billion in H1 FY2021 from Rs. 9.36 billion in H1 FY2020 whereas PBT grew by 20.3% to Rs. 5.55 billion in Q2 FY2021 compared to Rs. 4.61 billion in Q2 FY2020.

- Capital gains were lower at Rs. 1.84 billion in H1 FY2021 compared to Rs. 2.07 billion in H1 FY2020. Capital gains were at Rs. 1.24 billion in Q2 FY2021 compared to Rs. 0.69 billion in Q2 FY2020.

- Consequently, Profit after tax (PAT) grew by 31.7% to Rs. 8.14 billion in H1 FY2021 as against Rs. 6.18 billion in H1 FY2020 whereas PAT grew by 35.0% to Rs. 4.16 billion in Q2 FY2021 from Rs. 3.08 billion in Q2 FY2020.

- Return on Average Equity (ROAE) was 24.9% in H1 FY2021 compared to 22.3% in H1 FY2020 while ROAE was 24.7% in Q2 FY2021 compared to 22.0% in Q2 FY2020.

- Solvency ratio was 2.74x at September 30, 2020 as against 2.50x at June 30, 2020 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.17x at March 31, 2020.

Shares of ICICI Lombard General Insurance Company Ltd was last trading in BSE at Rs.1254.95 as compared to the previous close of Rs. 1256.45. The total number of shares traded during the day was 7380 in over 983 trades.

The stock hit an intraday high of Rs. 1265 and intraday low of 1241.3. The net turnover during the day was Rs. 9240850.

Source : Equity Bulls

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