The gross direct premium income saw a 7.6 percent degrowth in the June quarter
Private general insurer ICICI Lombard General Insurance reported a 7.1 percent year-on-year (YoY) rise in its net profit for the quarter ended June 2019 (Q1FY20) at Rs 309.81 crore.
Gross Direct Premium Income (GDPI) of the company declined 7.6 percent YoY to Rs 3,487 crore in Q1FY20.
However, the company said that excluding the crop segment, the GDPI rose by 17.7 percent YoY to Rs 3,488 crore.
Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance said that they have not won any crop insurance tender and that they will focus on the granular businesses going forward.
The insurer’s combined ratio stood at 100.4 percent in Q1FY20 from 98.8 percent in Q1FY19, primarily on account of long-term motor policies and losses incurred by Cyclone Fani. The company has put their insurance loss number for Fani at Rs 16 crore.
The underwriting losses came down to Rs 44.93 crore in Q1FY20 compared to Rs 69.87 crore in the year-ago period.
Among segments, motor insurance underwriting losses rose to Rs 94.16 crore in Q1FY20 from Rs 23.20 crore in the year-ago period. Group health posted an underwriting profit of Rs 26.54 crore compared to loss of Rs 102.94 crore in the year-ago period. Fire business losses also jumped to Rs 7.55 crore in Q1 from Rs 7 lakh a year ago.
Solvency ratio in Q1 stood at 2.20, against 2.24 at the end of March 31, 2019, and higher than the minimum regulatory requirement of 1.50.With the price increases in the motor third party segments in June 2019, Dasgupta added that they will benefit from Q2 onwards.The Great Diwali Discount!
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