Last Updated on October 20, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
One of the country’s leading private sector general insurance companies, ICICI Lombard General Insurance Company Ltd., offers a comprehensive range of products. The company began as a partnership between ICICI Bank Limited and a Canadian financial holding company, Fairfax Financial Holdings Limited. It was established in 2001 and provides a diversified range of insurance products, including motor, health, personal accident, and liability insurance.
ICICI Lombard General Insurance Company Limited announced its financial results for the second quarter of FY2023-24 on October 18th. Here are the important facts and figures you must know.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights
- H1 Gross Direct Premium Income (GDPI): ₹ 12,472 Cr
- Q2 Gross Direct Premium Income (GDPI): ₹ 6,086 Cr
- H1 Growth: 18.2% YoY
- Profit Before Tax (PBT): ₹ 1,284 Cr
- H1 Growth: 19.4%
- H1 Net Profit (PAT): ₹ 968 Cr
- H1 Growth: 3% YoY
- H1 Return on Average Equity (ROAE): 18%
ICICI Lombard’s figures for H1 FY2023-24 and Q2 for the same financial year make for an interesting read. The company reported a 2.25% decline in net profit to ₹ 577.25 Cr during Q2 of FY2023-24. This number was down from ₹ 590.53 Cr, which the company reported during the same period last year. The decrease was chalked up to an increase in overall expenses, which shot up by 11.62% to ₹ 4,452.02 Cr during the quarter under review. This was up from ₹ 3,988.82 Cr during the same quarter the previous year and was ascribed to a rise in commissions and brokerage costs.
However, the Gross Direct Premium Income (GDPI) rose by 17.4% YoY to ₹ 6,086 Cr from ₹ 5,185 Cr, which was higher than the industry growth of 12.5%.
For the quarter under review, the retail health agency vertical grew by 21.7%, and the motor segment increased by 10.9% against the industry’s overall growth of 13.9%.
Another metric that highlights the company’s performance is its Gross Premium Written (GWP), which rose by 18.29% YoY to ₹ 6,272.3 Cr against ₹ 5,302.6 Cr during Q2 of FY2022-23. Additionally, the underwriting loss shrunk to ₹ 146 Cr from ₹ 152.3 Cr during Q2 of FY2022-23. This brought down the combined ratio to 103.90% from 105.10%. These figures indicate an upturn in business, even if the net profit declined since last year.
Management Commentary
Major Announcements
- The company’s Board of Directors declared an interim dividend of ₹ 5 per share for H1 FY2023-24, an increase of ₹ 0.50 per share from H1 FY2022-23.
Operating Performance Review: YoY Comparison
| Financial Indicator | H1 FY 2022-23 | H1 FY 2023-24 | YoY | Q2 FY2022-23 | Q2 FY2023-24 | YoY |
| Gross Direct Premium Income (GDPI) | ₹ 10,555 Cr | ₹ 12,472 Cr | 18.2% | ₹ 5,185 | ₹ 6,086 | 17.4% |
| Profit Before Tax (PBT) | ₹ 1,075 Cr | ₹ 1,284 Cr | 19.4% | ₹ 610 Cr | ₹ 764 Cr | 25.3% |
| Profit After Tax (PAT)* | ₹ 940 Cr | ₹ 968 Cr | 3% | ₹ 591 Cr | ₹ 577.25 Cr | -2.2% |
* Excluding the reversal of tax provision in Q2 2023, PAT grew by 19.2% in H1 FY2023-24 and 24.8% in Q2 FY2023-24
Key Financial Ratios
| Financial Indicator | H1 FY 2022-23 | H1 FY 2023-24 | Q2 FY 2022-23 | Q2 FY 2023-24 |
| ROAE (%) – Annualised | 19.9% | 18.0% | 24.5% | 21.1% |
| Combined Ratio (CoR) | 104.6% | 103.7% | 105.1% | 103.9% |
Stock Performance
ICICI Lombard’s share price opened at ₹ 1,370.95 on the 19th of October and closed at ₹ 1,375.55 apiece on NSE before the results were declared. The share prices were up by 1.21%.
Additional Read: ICICI Lombard Share Price
About the Company
ICICI Lombard General Insurance Company Limited is India’s leading general insurance company, providing a wide range of products through various distribution channels. The company offers health, personal accident, and liability insurance, among others, and boasts a legacy of over 21 years.
For the year ended March 31, 2023, ICICI Lombard issued over 327 lakh policies, settled 36 lakh claims, and boasted a GWP of ₹ 21,772 Cr. The company has also been honoured with several awards, including the ET Corporate Excellence Awards and Golden Peacock Awards in the past.
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