ICICI Lombard drops as IRDAI waives lock-in period

ICICI Lombard General Insurance Company dropped after the insurance regulator relaxed the conditions of lock-in period on the equity shares held by Fairfax in the company.

Meanwhile, the S&P BSE Sensex was up 29 points or 0.08% to 36,592.01.

The ICICI Lombard General Insurance Company scrip lost 4.32% to Rs 1,139.50. The stock hit a high of Rs 1,169.95 and a low of Rs 1,125.85 so far during the day. The stock hit a 52-week high of Rs 1,285.35 on 03 September 2019. The stock hit a 52-week low of Rs 703.40 on 09 October 2018.

On the BSE, 18,000 shares were traded in the counter so far compared with average daily volumes of 32,413 shares in the past one quarter. The scrip has outperformed the market in past one year, up 48.58% as against Sensex's 4.57% rise.

The Insurance Regulatory and Development Authority of India (IRDAI) vide its letter dated 30 March 2016 had imposed lock in for a period of five years i.e. till 29 March 2021 on 4.02 crore shares (constituting 9% of then issued and paid-up capital of the company) held by FAL Corporation, an affiliate of Fairfax Financial Holdings (Fairfax).

ICICI Lombard General Insurance Company was communicated by IRDAI vide its letter dated 3 September 2019 that pursuant to request received from Fairfax and as a matter of exception taken, the conditions of lock in period on the equity shares held by Fairfax in the company, may not be insisted upon. The announcement was made after market hours yesterday, 3 September 2019.

The company's net profit rose 7.1% to Rs 309.81 crore on a 17.4 % increase in the total income to Rs 2791.08 crore in Q1 June 2019 over Q1 June 2018.

ICICI Lombard General Insurance Company is one of the leading private sector general insurance companies in India. It is engaged in general insurance, reinsurance, insurance claims management and investment management.

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