ICICI Lombard Q1 net profit up 28% at Rs 398 cr but GDPI dips 5.3%

Private sector non-life insurer ICICI Lombard General Insurance has reported a profit after tax of Rs 398 crore in the first quarter of the current financial year, up 28.5 per cent from Rs 310 crore in Q1 FY20.

However, the gross direct premium income (GDPI) had a de-growth of 5.3 per cent to Rs 3,302 crore in Q1 FY21 compared to Rs 3,487 crore in the same period of previous fiscal.

Excluding the crop segment, GDPI dipped by 6.2 per cent to Rs 3,274 crore as compared to Rs 3,488 crore, the company said in regulatory filings at stock exchanges late on Friday after market closing hours.

The combined ratio stood at 99.7 per cent compared to 100.4 per cent in the same period, primarily driven by Covid-19 pandemic despite losses incurred due to catastrophic events.

The combined ratio was 98.4 per cent in Q1 FY21 excluding the impact of cyclone Amphan and Nisarga of Rs 31 crore compared to 99.7 per cent in Q1 FY20 excluding the impact of cyclone Fani of Rs 16 crore.

ICICI Lombard said its profit before tax grew by 11.7 per cent to Rs 531 crore in Q1 FY21 from Rs 475 crore in Q1 FY20 on account of lower capital gains.

The capital gains were lower by 56.1 per cent at Rs 60 crore in the quarter ended March compared to Rs 138 crore in the corresponding period of previous fiscal.

Return on average equity (ROAE) was 25.1 per cent compared to 23 per cent while solvency ratio was 2.5x at June 30 as against 2.17x at March 31 and higher than the minimum regulatory requirement of 1.5x.