ICICI Lombard net profit rises 6.6% in Q3, premium income up 4%

Private sector general insurer ICICI Lombard has posted a 6.6 per cent rise in net profit at Rs 313.53 crore in the October–December (Q3) period of FY21, from Rs 294.11 crore in the same period of the previous financial year.

The gross direct premium income of the insurer rose 9.2 per cent in Q3FY21 to Rs 4,034 crore, from Rs 3,693 crore in Q3FY20. And, the premium income of the insurer has seen a 4 per cent growth in the first nine months of the current fiscal year (9MFY21) at Rs 10,522 crore, compared to Rs 10,132 crore in the corresponding period of last financial year.

Combined ratio of the insurer has improved in the reporting quarter as in Q3FY20 to 97.9 per cent. The ratio in the preceding quarter was 99.7 per cent. Combined ratio is a measure of profitability used by an insurance company to gauge how well it is performing in its daily operations. A ratio below 100 percent indicates that the company is making an underwriting profit, while a ratio above 100 percent means that it is paying out more money in claims that it is receiving from premiums.

Solvency ratio of the company has remained stable at 2.76, against the regulatory requirement of 1.5. Investment income of the insurer rose more than 30 per cent year on year to Rs 441.88 crore in Q3FY21, compared to Rs 336.36 crore.

The company has said it has received in principal approval from the insurance regulator its merger deal with Bharti AXA general insurance. And, the Competition Commission of India has also approved the deal. They will now present the scheme of amalgamation to the National Company Law Tribunal for approval.