Return on Average Equity (ROAE) was 20.3% in Q3 FY2020 compared to 19.0% in Q3 FY2019.

GDPI of the Company stood at Rs 3693 crore in Q3 FY2020 compared to Rs 3699 crore in Q3 FY2019. Excluding crop segment, GDPI of the Company increased 8% to Rs 3672 crore in Q3 FY2020 from Rs 3389 crore in Q3 FY2019, as compared to industry growth of 10.9% for the same period.

The net premium income of the company has increased 16% to Rs 2456.16 crore in Q3FY2020. Combined ratio improved to 98.7% in Q3 FY2020 from 102.6% in the previous quarter, while rose from 95.9% in Q3 FY2019.

Capital gains were lower at Rs 17 crore in Q3FY2020 compared to Rs 49 crore in Q3FY2019.

Investment assets increased 22% to Rs 24845 crore end December 2019, as compared to Rs 20445 crore end December 2018. Investment leverage (net of borrowings) was 4.16x end December 2019 as compared to 3.92x end March 2019. Investment income increased to Rs 437 crore in Q3FY2020 as compared to Rs 397.0 crore in Q3FY2019.

Solvency ratio was 2.18x end December 2019 as against 2.26x end September 2019 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.24x end March 2019.

Book value of the company stood at Rs 128.8 per share end December 2019. Book value including fair value change account (shareholders funds) stood at Rs 129.7 per share end December 2019.

YTD Financial Performance

Profit after tax (PAT) grew by 11% to Rs 912 crore in 9MFY2020 as compared to Rs 822 crore in 9MFY2019.

Gross Direct Premium Income (GDPI) of the Company stood at Rs 10132 crore in 9MFY2020 as compared to Rs 11003 crore in 9MFY2019, a de-growth of 7.9%. Excluding crop segment, our GDPI increased to Rs 10058 crore in 9MFY2020 as compared to Rs 8883 crore in 9MFY2019, registering a growth of 13.2% in line with the industry growth.

Combined ratio stood at 100.5% in 9MFY2020 as compared to 98.7% in 9MFY2019 primarily on account of long-term motor policies and losses from catastrophic events in the previous quarters.

Investment income increased to Rs 1441 crore in 9MFY2020 as compared to Rs 1341 crore in 9MFY2019. Capital gains were lower at Rs 224 crore in 9MFY2020 as compared to Rs 370 crore in 9MFY2019.

Profit before tax (PBT) grew by 5.9% to Rs 1326 crore in 9MFY2020 as compared to Rs 1253 crore in 9MFY2019

The Company has elected to exercise the option of lower income tax rate. The effective tax rate was 31.2% in 9MFY2020 compared with 34.4% in 9MFY2019.

Return on Average Equity i.e. ROAE, was 21.8% in 9MFY2020 as compared to 22.7% in 9MFY2019.