Private non-life insurer ICICI Lombard General Insurance posted a 28.5 percent year-on-year (YoY) growth in its June quarter (Q1FY21) net profit to Rs 398.1 crore backed by an improvement in the combined ratio and lower capital gains.
However, the gross domestic premium income saw a 5.3 percent YoY decline to Rs 3,302 crore in Q1. The company said this was on account of the Coronavirus-linked disruption.
Capital gains were lower by 56.1 percent at Rs 60 crore in Q1FY21 compared to Rs 138 crore in the year-ago period.
The combined ratio stood at 99.7 percent in Q1 compared to 100.4 percent in the year-ago period.
ICICI Lombard said the combined ratio was 98.4 percent in Q1FY21 excluding the impact of cyclone Amphan and Nisarga of Rs 31 crore compared to 99.7 percent in the year-ago period excluding the impact of cyclone Fani of Rs 16 crore.
The solvency ratio was 2.50x at June 30, 2020 as against 2.17x at March 31, 2020 and higher than the minimum regulatory requirement of 1.50x.
With respect to the individual business segments, there was underwriting loss reported in the marine, fire, group health, retail health and crop business.
Motor insurance which had seen an underwriting loss in the year-ago period posted underwriting profit of Rs 90.4 crore in the June quarter. This would be the direct impact of lesser vehicles on roads due the Coronavirus lockdown and consequently lower number of accidents and hence low motor insurance claims.
For the general insurance industry, the Coronavirus outbreak has led to a rise in claims especially in the fire (due to prolonged factory/office shutdowns) as well as in health insurance (hospitalisation).
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