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ICICI Lombard Q2 Results: Profit Rises 130% Even Amid Higher Claims

The private insurer's profit rose 130% sequentially to Rs 446.7 crore in the quarter ended September.

<div class="paragraphs"><p>A person uses a calculator. (Photographer: Maurice Tsai/ Bloomberg News)</p></div>
A person uses a calculator. (Photographer: Maurice Tsai/ Bloomberg News)

ICICI Lombard General Insurance Co.'s quarterly profit rose even as claims paid by the company increased.

The private insurer's profit rose 130% sequentially to Rs 446.7 crore in the quarter ended September, it said in an exchange filing. Analysts polled by Bloomberg had pegged the metric at Rs 385.4 crore.

Claims paid by the company rose 40.2% sequentially to Rs 2,119.3 crore. The amount charged towards outstanding claims, including claims incurred but not reported, fell 88% quarter-on-quarter to Rs 150.6 crore.

Highlights (QoQ)

  • Revenue rose 3% to Rs 3,250.3 crore.

  • Ebitda surged 744% to Rs 457.1 crore.

  • Margins stood at 14.1% versus 1.7%.

  • Operating loss stood at Rs 19.4 crore in the retail health segment, while the health group and corporate segment swung back to profit of Rs 49.7 crore against a loss of Rs 395.4 crore.

  • Earnings per share stood Rs 9.11 apiece against Rs 3.96 in the previous quarter. That compares with the Bloomberg estimate of Rs 8.27 per share.

  • Solvency ratio stood at 2.49 versus 2.61, higher than the minimum regulatory requirement of 1.50.

  • Incurred claim ratio has gone down to 69.8% from 89.4% while the net retention ratio has increased to 67.7% from 65.8%.

Other Highlights (Half-Yearly)

  • The after-tax profit fell 21% to Rs 640.9 crore, impacted by an increase in claims and underwriting losses.

  • Ebidta margin was at 8% from 18% despite a 34% rise in revenue.

  • Incurred claims ratio stood at 79.5% against 68.4%.

  • Net retention ratio was 66.8% versus 70.9%.

  • Combined ratio, calculated by taking the sum of incurred losses and expenses and dividing them by the premium earned, stood at 114.3%, compared with 99.8% in the same period a year ago. This includes the impact of floods and cyclones and impact of Covid-19 claims on the health book of the company.

  • Return on average equity was 15.2% versus 24.9%.

The insurer has declared an interim dividend of Rs 4 per share for the first half of the ongoing fiscal.