The company has declared an interim dividend of Rs 0.75 per share for the second quarter of FY18.
Private general insurance company ICICI Lombard General Insurance posted a 19.3 percent increase in the net profit for the second quarter ended September 30, 2017 as compared to the same period last fiscal. The profit after tax stood at Rs 204.04 crore for Q2 FY18 as compared to Rs 170.95 crore in the second quarter of the previous fiscal.
ICICI Lombard had listed on the bourses last month.
The insurer’s gross direct premium income (GDPI) rose to Rs 3,173 crore in Q2 from Rs 2,685 crore a year earlier. The company has declared an interim dividend of Rs 0.75 per share for the second quarter of FY18.
Bhargav Dasgupta, Managing Director and Chief Executive Officer of ICICI Lombard General Insurance, said that the combined ratio went down to 102.7 percent in the first half of FY18 as compared to 106 percent for the same period last year. The solvency ratio of the insurer stood at 2.18 at the end of September 30, 2017 as compared to 2.03 in same period last year.
“The focus is to bring the combined ratio down. We will endeavor to bring it down further,” he said. Underwriting loss for Q2 of this fiscal dropped to Rs 84 crore compared to Rs 111 crore in same quarter last fiscal.
Dasgupta explained that loss ratios have improved in almost all lines of business (except crop and including fire, marine, motor and health). He added that while underwriting losses have increased in motor segment, this is primarily on account of third party losses.
The GDPI of the company increased to Rs 6,494 crore in the first half FY18 compared to Rs 5,565 crore in the first half of FY17, registering a growth of 16.7 percent.
In terms of the product mix, motor own damage (23 percent) followed by crop and property (21 percent each) were the three biggest segments.
On the health side, retail, corporate and government Sponsored health contributed 54.4 percent, 43.2 percent and 2.4 percent respectively of health GDPI in the first half FY18 as compared to 44.3 percent, 34.4 percent and 21.3 percent respectively of health GDPI in the first half of FY17.
With respect to crop insurance, Dasgupta said that the Kharif crop cutting is not over and we will get to know the losses only in due time.“Hence for H1, given that we don’t have complete visibility of the profit/loss, as a conservative measure we have assumed losses at 100 percent for the business that we have written this year,” he said.