ICICI Lombard general insurance PERFORMANCE FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2022
- Gross Direct Premium Income (GDPI) of the Company was at ₹ 105.55 billion in H1 FY2023as against ₹ 86.13 billion in H1 FY2022, a growth of 22.6%. This growth was higher than industry growth of 15.3%.
o GDPI of the Company was at ₹ 51.85 billion in Q2 FY2023 as against ₹ 44.24 billion in Q2 FY2022, growth of 17.2%. This growth was higher than industry growth of 10.0%.
- Combined ratio stood at 104.6% in H1 FY2023 compared to 114.3% in H1 FY2022. Excludingthe impact of cyclone and flood losses of ₹ 0.28 billion, the combined ratio was 104.2% in H1 FY2023 as against 113.0% in H1 FY2022 excluding the impact of cyclone and flood loses of ₹ 0.82 billion.
o Combined ratio stood at 105.1% in Q2 FY2023 as against 105.3% in Q2 FY2022. Excluding the impact of flood and cyclone losses of ₹ 0.28 billion, the combined ratio was 104.3% in Q2 FY2023 as against 103.7% in Q2 FY2022 excluding the impact of cyclone and flood losses of ₹ 0.50 billion.
- Profitbefore tax (PBT) grew by 26.1% to ₹ 10.75 billion in H1 FY2023 as against ₹
8.52 billion in H1 FY2022 whereas PBT grew by 2.7% to ₹ 6.10 billion in Q2 FY2023 as against ₹ 5.94 billion in Q2 FY2022.
o Our capital gains (net of impairment on equity investment assets) stood at ₹
1.43 billion in H1 FY2023 as compared to ₹ 4.71 billion in H1 FY2022. Capital gains (net of impairment on equity investment assets) in Q2 FY2023 was at ₹
1.11 billion as compared to ₹ 1.44 billion in Q2 FY2022.
- Consequently,Profit after tax (PAT) grew by 46.6% to ₹ 9.40 billion in H1 FY2023 as against ₹ 6.41 billion in H1 FY2022 whereas PAT grew by 32.2% to ₹ 5.91 billion in Q2 FY2023 from ₹ 4.47 billion in Q2 FY2022.
o PAT includes reversal of tax provision of ₹ 1.28 billion. Excluding this, growth in PAT was 26.5% and 3.4% for H1 and Q2 FY2023 respectively.
- Return on Average Equity (ROAE) was 19.9% in H1 FY2023 compared to 15.2% in H1FY2022 while ROAE was 24.5% in Q2 FY2023 compared to 21.0% in Q2 FY2022.
o Excluding the reversal of tax provision, ROAE for H1 and Q2 FY2023 was at 17.3% and 19.3% respectively.
- Solvency ratio was 2.47x at September 30, 2022 as against 2.61x at June 30, 2022 andhigher than the minimum regulatory requirement of 1.50x. Solvency ratio was
2.46x at March 31, 2022.
- The Board of Directors of the company has declared interim dividend of ₹ 4.50 per share for H1 FY2023.
Operating Performance Review
(₹ billion)
| Financial Indicators | Q2 FY2023 | Q2 FY2022 | Growth
% |
H1 FY2023 | H1 FY2022 | Growth
% |
FY2022 |
| GDPI | 51.85 | 44.24 | 17.2% | 105.55 | 86.13 | 22.6% | 179.77 |
| PBT | 6.10 | 5.94 | 2.7% | 10.75 | 8.52 | 26.1% | 16.84 |
| PAT | 5.91 | 4.47 | 32.2% | 9.40 | 6.41 | 46.6% | 12.71 |
Ratios
| Financial Indicators | Q2 FY2023 | Q2 FY2022 | H1 FY2023 | H1 FY2022 | FY2022 |
| ROAE (%) – Annualised | 24.5% | 21.0% | 19.9% | 15.2% | 14.7% |
| Combined Ratio | 105.1% | 105.3% | 104.6% | 114.3% | 108.8% |
Notes:
Combined Ratio = (Net Incurred Claims/ Net Earned Premium) + (Management Expenses – Commission on Reinsurance)/ Net Written Premium
Management Expenses = Commission Paid Direct + Commission Paid on Reinsurance inward + Operating expenses related to insurance business
Return on Average Equity (ROAE) = Profit After Tax / ((Opening Net Worth + Closing Net Worth)/2)
Net Worth = Share Capital + Reserves & Surplus