Equity Analysis

NEWS

Gainers & Losers

Corporate Results - Detailed News

Back

ICICI Lombard General Insurance Company

19-Jan-19 19:06 Hrs IST

ICICI Lombard General Insurance Company has posted 3% growth in the net profit to Rs 239.14 crore in the quarter ended December 2018 (Q3FY2019). PBT increased 12% to Rs 360.67 crore in Q3FY2019. PBT for Q3FY2019 includes upfront expensing of acquisition cost relative to the growth of 25.9% in GDPI whereas the full benefit of earned premium will be realized over the policy period. ROAE was 19.0% in Q3 FY2019 compared to 21.9% in Q3 FY2018 on account of upfront expensing of acquisition cost.

The Gross Direct Premium (GDPI) of the Company increased 26% to Rs 3699 crore in Q3FY2019 compared to Rs 2937 crore in Q3FY2018, as against industry growth rate of 13.6%. The GDPI increased 16.7% to Rs 11003 crore in 9MFY2019 from Rs 9431 crore in 9MFY2018 against the industry growth of 13.1%. The company has continued to register an across the board increased growth in most corporate lines Fire, Engineering, Marine, Liability and Group Health. In addition, this quarter, the company also registered robust growth in the Motor segment which aided overall GDPI growth in the current quarter. The net premium income of the company has increased 21% to Rs 2110.97 crore in Q3FY2019. The combined ratio improved to 95.9% in Q3FY2019 from 96% in Q3 FY2018.

Investment assets rose to Rs 20445 crore end December 2018, as compared to Rs 19272 crore end September 2018. Investment leverage (net of borrowings) was 3.92x end December 2018 as compared to 3.77x end September 2018. Investment income increased to Rs 387 crore in Q3FY2019 as compared to Rs 350 crore in Q3FY2018. Capital gains declined to Rs 49 crore in Q3 FY2019 compared to Rs82 crore in Q3 FY2018.

Solvency ratio was 2.12x end December 2018 as against 2.10x end September 2018 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.05x end March 2018.

Book value of the company stood at Rs 112.1 per share end December 2018.

YTD Yearly Financial Performance

The net profit of the company improved 26% to Rs 821.53 crore in 9MFY2019. PBT jumped 37.8% to Rs 1253 crore in 9M FY2019 compared to Rs 909 crore in 9MFY2018. Gross Direct Premium Income (GDPI) of the Company increased 16.7% to Rs 11003 crore in 9MFY2019 compared to Rs 9431 crore in 9MFY2018, as against industry growth of 13.1%. Combined ratio improved to 98.7% in 9M FY2019 from 100.4% in 9M FY2018. Investment income increased to Rs 1341 crore for 9MFY2019 from Rs 1176 crore for 9MFY2018. Capital Gains were lower at Rs 370 crore in 9MFY2019 compared to Rs 404 crore for 9MFY2018. Return on Average Equity (ROAE) was 22.7% in 9M FY2019 compared to 21.5% in 9M FY2018.

Statement of Revenue Accounts: ICICI Lombard General Insurance Company

	1812 (3)	1712 (3)	Var %	1812 (9)	1712 (9)	Var %	1803 (12)	1703 (12)	Var %
1. Premiums earned (net)	2110.97	1750.51	21	6177.88	5095.09	21	6911.73	6163.60	12
2. Profit / Loss on sale/ redemption of investments	301.93	263.41	15	1022.53	885.43	15	1126.75	1001.23	13
3. Others -	3.49	5.85	-40	32.10	19.18	67	27.86	44.67	-38
4. Interest, Dividend & Rent Gross	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Total (A)	2416.39	2019.77	20	7232.51	5999.70	21	8066.34	7209.50	12

1. Claims Incurred (net)	1528.86	1268.33	21	4733.46	3887.99	22	5314.72	4954.33	7
2. Commission (net)	92.11	-48.24	PL	159.75	-269.23	PL	-283.95	-434.13	-35
3. Operating expenses related to insurance business	518.59	510.23	2	1404.62	1697.58	-17	2111.86	1982.04	7
4. Premium deficiency	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Total Expenses (B)	2139.56	1730.32	24	6297.83	5316.34	18	7142.63	6502.24	10

Operating Profit/ Loss C=(A -B)	276.83	289.45	-4	934.68	683.36	37	923.71	707.26	31
APPROPRIATIONS
Transfer to Shareholders' Account	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Transfer to Catastrophe Reserve	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Transfer to Other Reserves	276.83	289.45	-4	934.68	683.36	37	923.71	707.26	31

Statement of Profit & Loss Account: ICICI Lombard General Insurance Company

	1809 (3)	1709 (3)	Var %	1809 (6)	1709 (6)	Var %	1803 (12)	1703 (12)	Var %
1. Operating profit/(loss)	276.83	289.45	-4	934.68	683.36	37	923.71	707.26	31
(a) Fire Insurance	24.87	34.37	-28	52.82	89.00	-41	132.79	99.68	33
(b) Marine Insurance	5.46	9.56	-43	-33.63	5.53	PL	46.92	-9.67	LP
(c) Health	108.16	133.17	-19	252.13	401.11	-37	502.77	313.47	60
(d) Crop	-26.74	18.85	PL	-40.96	44.77	PL	-63.64	186.48	PL
(e) Motor	129.07	47.79	170	628.68	87.73	617	275.68	195.08	41
(f) Miscellaneous Insurance	36.02	45.71	-21	75.65	55.22	37	29.19	-77.78	LP

2. Income from investments	95.07	97.07	-2	349.36	323.79	8	405.89	309.22	31
3. Other income	11.12	8.06	-	11.14	8.08	38	8.15	2.01	305
Total (A)	383.02	394.58	-3	1295.18	1015.23	28	1337.75	1018.49	31

4. Provisions (Other than taxation)	2.06	55.43	-96	-15.78	59.24	-127	67.91	9.98	580
5. Other expenses	20.29	16.80	21	58.04	46.93	24	73.60	98.41	-25

Total (B)	22.35	72.23	-69	42.26	106.17	-60	141.51	108.39	31

Profit before tax (A-B)	360.67	322.35	12	1252.92	909.06	38	1196.24	910.10	31
Provision for taxation	121.53	90.59	34	431.39	259.15	66	334.46	208.22	61
Profit after tax	239.14	231.76	3	821.53	649.91	26	861.78	701.88	23
EPS (Rs) *	21.07	20.42		24.12	19.08		18.98	15.46
* on current equity of Rs 454.06 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to Profit Figures in crore, Source: Capitaline Database