Capitaline

Results 24-Jul-21

Analysis

ICICI Lombard General Insurance Company

Combined ratio jumps to 121.3% in Q1FY2022, health segment worst impacted

ICICI Lombard General Insurance Company has posted 62% dip in the net profit to Rs 151.63 crore in the quarter ended June 2021 (Q1FY2022). PBT moved up declined 62% to Rs 201.50 crore in Q1FY2022. The performance in the quarter ended June 2021 has been impacted due to covid claims on health book of Rs 602 crore as against Rs 20 crore in Q1FY2021 and Rs 339 crore in FY2021. Loss ratio was flat at 69.8% in Q1FY2022 from 69.8% in Q1FY2021.

Gross Direct Premium Income (GDPI) of the Company stood at Rs 3733 crore in Q1FY2022 compared to Rs 3302 crore in Q1FY2021, a growth of 13.0%. This was in line with the industry growth.

Combined ratio jumped to 121.3% in Q1FY2022 compared to 99.7% in Q1FY2021 primarily driven by Covid-19 pandemic during the quarter. The Combined ratio includes Covid-19 impact on health book of Rs 602 crore in Q1FY2022 as against Rs 20 crore in Q1FY2021 and Rs 339 crore in FY2021.

Profit before tax (PBT) stood at Rs 202 crore in Q1FY2022 from Rs 531 crore in Q1FY2021, registering de growth of 62.1%.

Investment assets increased 14% to Rs 32075 crore end June 2021, as compared to Rs 28118 crore end June 2020. Investment leverage (net of borrowings) was 4.16x end June 2021 as compared to 4.23x end June 2020. Investment income increased to Rs 698.40 crore in Q1FY2022 as compared to Rs 508.48 crore in Q1FY2021.

Capital gains increased to Rs 244 crore in Q1FY2022 compared to Rs 61 crore in Q1FY2021.

Consequently, Profit after tax (PAT) stood at Rs 152 crore in Q1FY2022 as compared to Rs 398 crore in Q1FY2021, registering de growth of 61.9%.

Return on Average Equity (ROAE) was 8.1% in Q1FY2022 compared to 25.1% in Q1FY2021.

Solvency ratio was 2.76x at June 30, 2021 as against 2.90x at March 31, 2021 and higher than the minimum regulatory requirement of 1.50x.

Book value of the company stood at Rs 167.0 per share end June 2021. Book value including fair value change account (shareholders funds) stood at Rs 171.0 per share end June 2021.

Financial Performance FY2021

Gross Direct Premium Income (GDPI) of the Company stood at Rs 14003 billion in FY2021 compared to Rs 13313 billion in FY2020, growth of 5.2%. This was in line with the industry growth. Combined ratio stood at 99.8% in FY2021 compared to 100.4% in FY2020.

Profit before tax (PBT) grew by 15% to Rs 1954 crore in FY2021 from Rs 1697 crore in FY2020 whereas PBT grew by 21% to Rs 450 crore in Q1FY2022 as compared to Rs 371 crore in Q1FY2021.

Capital gains were at Rs 359 crore in FY2021 compared to Rs 199 crore in FY2020.

The net profit grew by 23.4% to Rs 1473 crore in FY2021 compared to Rs 1194 crore in FY2020.

Return on Average Equity (ROAE) was 21.7% in FY2021 compared to 20.8% in FY2020.

ICICI Lombard General Insurance Company: Results Statement of Revenue Accounts
	2106 (3)	2006 (3)	Var %	2103 (12)	2003 (12)	Var %
1. Premiums earned (net)	2705.77	2323.84	16	10013.99	9403.52	6
2. Profit / Loss on sale/ redemption of investments	531.22	394.00	35	1664.24	1542.50	8
3. Others -	9.91	11.83	-16	483.14	106.74	353
4. Interest, Dividend & Rent Gross	0.00	0.00	-	0.00	0.00	-
Total (A)	3246.90	2729.67	19	12161.37	11052.76	10

1. Claims Incurred (net)	2468.27	1621.66	52	6870.81	6851.58	0
2. Commission (net)	103.79	101.62	2	600.93	363.99	65
3. Operating expenses related to insurance business	641.87	562.40	14	2734.19	2293.10	19
4. Premium deficiency	0.00	0.00	-	0.00	0.00	-
Total Expenses (B)	3213.93	2285.68	41	10205.93	9508.67	7

Operating Profit/ Loss C=(A -B)	32.97	443.99	-93	1955.44	1544.09	27
APPROPRIATIONS
Transfer to P&L Account	32.97	443.99	-93	1955.44	1544.09	27
Transfer to Other Reserves	0.00	0.00	-	0.00	0.00	-

ICICI Lombard General Insurance Company: Results Statement of Profit & Loss Account
	2106 (3)	2006 (3)	Var %	2103 (12)	2003 (12)	Var %
1. Operating profit/(loss)	32.97	443.99	-93	1955.44	1544.09	27
(a) Fire Insurance	67.30	8.50	692	237.55	95.14	150
(b) Marine Insurance	-7.65	-9.13	-16	-9.89	35.47	-128
(c) Health	-515.68	12.16	PL	186.29	497.52	-63
(d) Crop	1.10	5.68	-81	25.12	16.25	55
(e) Motor	443.92	380.62	17	1301.08	662.19	96
(f) Miscellaneous Insurance	43.98	46.16	-5	215.29	237.52	-9

2. Income from investments	167.18	114.48	46	504.63	464.44	9
3. Other income	0.01	0.02	-50	12.38	15.57	-20
Total Income (A)	200.16	558.49	-64	2472.45	2024.10	22

4. Provisions (Other than taxation)	-31.84	5.66	LP	-46.64	168.35	LP
5. Other expenses	30.50	21.79	40	565.14	158.86	256

Total Expenses (B)	-1.34	27.45	LP	518.50	327.21	58

Profit before tax (A-B)	201.50	531.04	-62	1953.95	1696.89	15
Provision for taxation	49.87	132.94	-62	480.90	503.13	-4
Profit after tax	151.63	398.10	-62	1473.05	1193.76	23
EPS (Rs) *	13.3	35.0		32.4	26.3
* on current equity of Rs 454.65 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to Profit, Figures in crore, Source: Capitaline Database

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