ICICI Lombard’s performance for half year ended September 30, 2020

 Highlights :

 ·         Gross Direct Premium Income (GDPI) of the Company stood at INR 64.91 billion in H1 FY2021 compared to INR 64.40 billion in H1 FY2020, a growth of 0.8%. Excluding crop segment, GDPI of the Company increased to INR 64.59 billion in H1 FY2021 compared to INR 63.86 billion in H1 FY2020, registering a growth of 1.1%. This was lower than the industry growth (excluding crop segment) of 2.8%. The industry growth has been muted due to Covid-19 pandemic.

 o   GDPI of the Company stood at INR 31.89 billion in Q2 FY2021 compared to INR 29.53 billion in Q2 FY2020, a growth of 8.0%. Excluding crop segment, GDPI of the Company increased to INR 31.86 billion in Q2 FY2021 compared to INR 28.98 billion in Q2 FY2020, registering a growth of 9.9%. This was higher than the industry growth (excluding crop segment) for Q2 FY2021 of 9.2%.

 

·         Combined ratio stood at 99.8% in H1 FY2021 compared to 101.5% in H1 FY2020 despite losses incurred from cyclone and floods. Excluding the impact of cyclone and flood losses of ₹ 0.77 billion, the combined ratio was 98.2% in H1 FY2021 as against 100.1% in H1 FY2020 excluding the impact of cyclone and flood losses of ₹ 0.61 billion.

 o   Combined ratio stood at 99.7% in Q2 FY2021 compared to 102.6% in Q2 FY2020. Excluding the impact of flood and cyclone losses of ₹ 0.46 billion, the combined ratio was 97.9% in Q2 FY2021 as against 100.7% in Q2 FY2020 excluding the impact of cyclone and flood losses of ₹ 0.45 billion.

·         Profit before tax (PBT) grew by 15.9% to INR 10.86 billion in H1 FY2021 from INR 9.36 billion in H1 FY2020 whereas PBT grew by 20.3% to INR 5.55 billion in Q2 FY2021 compared to INR 4.61 billion in Q2 FY2020.

o   Capital gains were lower at INR 1.84 billion in H1 FY2021 compared to INR 2.07 billion in H1 FY2020. Capital gains were at INR 1.24 billion in Q2 FY2021 compared to INR 0.69 billion in Q2 FY2020.

 ·         Consequently, Profit after tax (PAT) grew by 31.7% to INR 8.14 billion in H1 FY2021 as against INR 6.18 billion in H1 FY2020 whereas PAT grew by 35.0% to INR 4.16 billion in Q2 FY2021 from INR 3.08 billion in Q2 FY2020.

·         Return on Average Equity (ROAE) was 24.9% in H1 FY2021 compared to 22.3% in H1 FY2020 while ROAE was 24.7% in Q2 FY2021 compared to 22.0% in Q2 FY2020.

Universal Sompo General Insurance

Universal Sompo General Insurance Co. Ltd Q1 FY21 PAT up by 165% at ₹ 46.21 Cr

The Board of Directors of Universal Sompo General Insurance Co. Ltd approved its Unaudited Financial Results for the quarter ended June 30^th, 2020.

Universal Sompo General Insurance Co. Ltd reported PAT of ₹ 46.21 Cr in Q1 FY21 (growth of 165% as compared to Q1 FY20), which was better than expected performance. The GDPI of the company rose by 16.62% to ₹ 418.62 Cr in Q1 FY21.

The loss ratio improved by 2.58% to 78% as compared to Q1 FY20 at 80.58%. This was mainly due to an improvement in Health Insurance, Personal Accident Insurance, Marine Insurance and Motor Insurance loss ratio. The combined operating ratio improved by 7.16% to 101.41% (Q1 FY20 was 108.57%). The Company reported a healthy growth of 25.34% in its investment income to ₹ 56.38 Cr as compared to ₹ 44.98 Cr in Q1 FY20 last year. Shareholder net worth increased by 4.59% in Q1 FY21, while the solvency ratio stands at 2.21 times.

Health Insurance remains a key growth driver for the company. It is important to note that Motor Insurance profitability is improving, and company has signed up some great digital alliances with many notable partners.

Apart from introducing a Covid-19 specific health product on a Group platform during the quarter, company has also begun to promote Arogya Sanjeevani, standardized health product formulated by IRDAI.