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ICICI Lombard General Insurance Company

19-Apr-19 17:38 Hrs IST

ICICI Lombard General Insurance Company has posted 7% increase in the net profit to Rs 227.73 crore in the quarter ended March 2019 (Q4FY2019). PBT increased 20% to Rs 345.49 crore in Q4FY2019. PBT for Q4 FY2019 includes upfront expensing of acquisition cost related to the growth of 29.4% in GDPI (excluding crop segment) whereas the full benefit of earned premium will be realized over the policy period. Return on Average Equity (ROAE) was 17.5% in Q4 FY2019 compared to 19.1% in Q4 FY2018, while ROAE improved to 21.3% in FY2019 compared to 20.8% in FY2018.

The Gross Direct Premium (GDPI) of the Company increased 19% to Rs 3485 crore in Q4FY2019 compared to Rs 2926 crore in Q4FY2018, as against industry growth rate of 12.6%. Excluding crop segment, GDPI growth for Q4 FY2019 was 29.4% over Q4FY2018. The GDPI increased 17% to Rs 14488 crore in FY2019 from Rs 12357 crore in FY2018 against the industry growth of 12.9%.

The net premium income of the company has increased 21% to Rs 2197.47 crore in Q4FY2019. The combined ratio improved to 98% in Q4FY2019 from 99.5% in Q4 FY2018. However, the company has consistently improved combined ratio to below 100% mark to 98.5% in FY2019 from 100.2% in FY2018 and 103.9% in FY2017.

Investment assets increased 22% to Rs 22231 crore end March 2019, as compared to Rs 18193 crore end March 2018. Investment leverage (net of borrowings) was 4.09x end March 2019 as compared to 3.9x end September 2018. Investment income increased to Rs 423.64 crore in Q4FY2019 as compared to Rs 323.42 crore in Q4FY2018.

Solvency ratio was 2.24x end March 2019 as against 2.02x end March 2018 and higher than the minimum regulatory requirement of 1.50x.

Book value of the company stood at Rs 117.1 per share end March 2019. Book value including fair value change account (shareholders funds) stood at Rs 118.9 per share end March 2019.

Annual Financial Performance

The net profit of the company improved 22% to Rs 1049.27 crore in FY2019. PBT jumped 34% to Rs 1598.42 crore in FY2019 compared to Rs 1196.24 crore in FY2018. Gross Direct Premium Income (GDPI) of the Company increased 17% to Rs 14488 crore in FY2019 compared to Rs 12357 crore in FY2018, as against industry growth of 12.9%. Combined ratio improved to 98.5% in FY2019 from 100.2% in FY2018. Investment income increased to Rs 1795.53 crore for FY2019 from Rs 1532.64 crore for FY2018. Return on Average Equity (ROAE) was 21.3% in FY2019 compared to 20.8% in FY2018.

Statement of Revenue Accounts: ICICI Lombard General Insurance Company

	1903 (3)	1803 (3)	Var %	1903 (12)	1803 (12)	Var %
1. Premiums earned (net)	2197.47	1816.64	21	8375.35	6911.73	21
2. Profit / Loss on sale/ redemption of investments	312.99	241.32	30	1335.52	1126.75	19
3. Others -	9.26	8.68	7	41.36	27.86	48
4. Interest, Dividend & Rent Gross	0.00	0.00	-	0.00	0.00	-
Total (A)	2519.72	2066.64	22	9752.23	8066.34	21

1. Claims Incurred (net)	1574.66	1426.73	10	6308.12	5314.72	19
2. Commission (net)	63.16	-14.72	LP	222.91	-283.95	LP
3. Operating expenses related to insurance business	585.16	414.28	41	1989.78	2111.86	-6
4. Premium deficiency	0.00	0.00	-	0.00	0.00	-
Total Expenses (B)	2222.98	1826.29	22	8520.81	7142.63	19

Operating Profit/ Loss C=(A -B)	296.74	240.35	23	1231.42	923.71	33
APPROPRIATIONS
Transfer to Shareholders' Account	0.00	0.00	-	0.00	0.00	-
Transfer to Catastrophe Reserve	0.00	0.00	-	0.00	0.00	-
Transfer to Other Reserves	296.74	240.35	23	1231.42	923.71	33

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

	1903 (3)	1803 (3)	Var %	1903 (12)	1803 (12)	Var %
1. Operating profit/(loss)	296.74	240.35	23	1231.42	923.71	33
(a) Fire Insurance	3.90	43.80	-91	56.71	132.79	-57
(b) Marine Insurance	-2.62	41.39	PL	-36.26	46.92	PL
(c) Health	101.48	101.66	0	353.61	502.77	-30
(d) Crop	37.66	-108.41	LP	-3.30	-63.64	-95
(e) Motor	71.15	187.94	-62	699.83	275.68	154
(f) Miscellaneous Insurance	85.18	-26.03	LP	160.83	29.19	451

2. Income from investments	110.65	82.10	35	460.01	405.89	13
3. Other income	3.16	0.07	-	14.30	8.15	75
Total (A)	410.55	322.52	27	1705.73	1337.75	28

4. Provisions (Other than taxation)	21.94	8.67	153	6.16	67.91	-91
5. Other expenses	43.12	26.67	62	101.15	73.60	37

Total (B)	65.06	35.34	84	107.31	141.51	-24

Profit before tax (A-B)	345.49	287.18	20	1598.42	1196.24	34
Provision for taxation	117.76	75.31	56	549.15	334.46	64
Profit after tax	227.73	211.87	7	1049.27	861.78	22
EPS (Rs) *	20.05	18.65		23.10	18.97
* on current equity of Rs 454.31 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to Profit Figures in crore, Source: Capitaline Database