InvestorQ : What explains the sharp spurt in profits of ICICI Lombard General Insurance?
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What explains the sharp spurt in profits of ICICI Lombard General Insurance?

Answer
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3 months ago


ICICI Lombard posted 28.5% rise in net profits for the Jun-20 quarter at Rs.398 crore. The growth in profits was driven by an improvement in the combined ratio. At a top line level, the gross domestic premium income fell by 5.3% YOY to Rs.3302 crore in the Jun-20 quarter. This can be largely attributed to the Coronavirus-linked disruption of activities.

Capital gains were 56% lower at Rs.60 crore in the quarter due to volatile and bearish markets. The combined ratio stood at 99.7%, marginally lower than the 100.4% reported in the previous quarter. Its solvency ratio improved to 2.50X compared to 2.17x in Mar-20. Motor insurance posted underwriting profits of Rs.90 crore due to lesser vehicles on roads.