Covid-19 impact: ICICI Lombard net profit falls 62% in April-June quarter

Private sector general insurer ICICI Lombard has reported a 62 per cent decline in net profit at Rs 151.63 crore in April-June quarter of FY22 as its underwriting losses mounted on account of higher Covid claims. 

In the April-June quarter, the insurer posted an underwriting loss of Rs 508.16 crore against an underwriting profit of Rs 38.16 crore in the year-ago period. In the March quarter, it had reported an underwriting loss of Rs 91.29 crore. 

The combined ratio of the insurer stood at 121.3 per cent in Q1 against 99.7 per cent in Q1FY21, primarily driven by Covid-19 impact. The impact on the health book of the insurer was to the tune of Rs 602 crore in Q1 against Rs 20 crore in the year-ago quarter and Rs 339 crore in FY21. 

The gross direct premium income of the insurer stood at Rs 3,733 crore in April-June quarter, up 13 per cent from Rs 3,302 quarter in the year-ago period. The solvency of the insurer at the end of June quarter was 2.76x against 2.90x on March 31, 2021, and higher than the minimum regulatory requirement of 1.50x.