ICICI Lombard reports marginal increase in net profit at Rs 446 cr in Q2

Private sector insurer ICICI Lombard General Insurance reported a net profit of Rs 446 crore in the July - September quarter (Q2) of FY22, marginally higher than the last year’s net profit of Rs 416 crore. But on a sequential basis, the net profit has more than doubled. 

The general insurer’s gross direct premium rose by 38.72 per cent on a year-on-year (YoY) basis to Rs 4,424 crore in Q2FY22 compared to Rs 3,189 crore in Q2FY21. 

As the company has merged Bharti Axa General Insurance business with itself, the numbers are not comparable with the previous year’s numbers. 

The combined ratio, which is a measure of the profitability, of the company in the reporting quarter stood at 105.3 per cent. The insurance company is making an underwriting profit if its combined ratio is below 100 per cent. If the ratio is above 100 per cent means that the company is making an underwriting loss. In Q2FY22, the insurer reported an underwriting loss of Rs 100.73 crore.

Combined ratio of the insurer stood at 114.3 per cent in H1FY22 as against 99.8 per cent in H1 FY21. In its investor presentation, the company has disclosed that the impact of covid claims on health book was Rs 561 crore in H1 FY22 as against Rs 115 crore in H1 FY21 and Rs 339 crore in FY21. 

The company saw a marginal deterioration in its solvency ratio by 12 basis points to 2.49x in the reporting quarter compared to 2.61x in the same period last year.