Research

ICICI Lombard - Q4FY22 First Cut - ICICI Direct

Posted On : 2022-04-22 11:02:36( TIMEZONE : IST )

(CMP - Rs. 1400; MCap- Rs. 68739 crore)

ICICI Lombard reported a mixed performance overall.

Q4FY22 Earnings Summary

- ICICI Lombard posted mixed set of numbers for Q4FY22 with a Gross Direct premium growth of 4.5% QoQ to Rs. 5000 crore while net written premium came in at Rs. 3973 crore, up 8.7% YoY. However net earned premium was flattish on a sequential basis at 0.2% QoQ to Rs. 3317 crore, indicating mostly premiums were written during the end part of the quarter. Income from investment was largely in line with our estimates at ~Rs. 540 crore

- Expenses were kept under control as commissions declined 21% QoQ to Rs. 160 crore but claims increased 4% sequentially to Rs. 2389 crore. The company, thus, posted an underwriting loss of Rs. 309 crore vs. a loss of Rs. 269 crore QoQ. Combined ratio declined 130 bps QoQ to 103.2%. The management believes this ratio will decline further but be 100+ in the next two years

- Motor segment continues to form a major part of premium collection and consists of 45% of the same compared to 44% in the previous quarter at Rs. 2250 crore (calculated) while health segment is now 22% of total premium compared to similar levels sequentially and was up 7% QoQ. The contribution of motor TP growth from CV segment is slightly higher this year. Within health segment, retail was up 1% QoQ while in corporate segment premium growth was up 10% QoQ. The company expects market share in private car segment to catch up soon

- On an aggregate basis, due to higher claims ratio @72% vs. 69.5% in the previous quarter and while lower earned premiums due to writing at fag end of the quarter overall profit for the quarter came in at Rs. 312 crore against expectation of Rs. 440 crore and was below our estimates. Solvency ratio for the company was steady on an overall basis at 2.5x

We will be coming out with a detailed report soon.

Shares of ICICI Lombard General Insurance Company Limited was last trading in BSE at Rs. 1400.30 as compared to the previous close of Rs. 1364.65. The total number of shares traded during the day was 19853 in over 1847 trades.

The stock hit an intraday high of Rs. 1410.55 and intraday low of 1364.00. The net turnover during the day was Rs. 27557688.00.