InvestorQ : How do you see the results of ICICI Lombard for the Dec-20 quarter?
Mahima Roy made post

How do you see the results of ICICI Lombard for the Dec-20 quarter?

6 months ago

For the Dec-20 quarter, the general insurance arm of the ICICI Group, ICICI Lombard General Insurance reported 6.6% growth in PAT at Rs.314 crore. Its total revenues for the quarter were up by 9.29% growth on a yoy basis at Rs.3,059cr. In fact, ICICI Lombard saw good traction across the key business segments including fire insurance, health and marine.

Let us not turn to the profitability of the company for the quarter. For the Dec-20 quarter, consolidated operating profits were marginally down -2.68% at Rs.313 crore. The operating margin or OPM as it is better known saw a slight softening from 11.46% in the Dec-19 quarter to 10.20% in Dec-20 quarter.

The Profit after tax or PAT for the Dec-20 quarter was up 6.60% at Rs.314cr. As a result PAT margins tapered from 10.51% in Dec-19 to 10.25% in Dec-20. However, despite this fall in PAT, Return on Average Equity or ROAE increased to 22.4% in the first 9 months of the fiscal year 2020-21. This compares favourably with just 21% recorded in the first nine months of the previous fiscal 2019-20.

There was good news on the solvency front. The Solvency ratio of ICICI Lombard General improved in the Dec-20 quarter to 2.76X from 2.74X in corresponding period last year; albeit in a very marginal manner. However, this is well above the statutory minimum requirement for the solvency ratio at 1.50X. Even the important combined ratio has improved to 99.1% from 100.5% last year.