ICICI Lombard H1 PAT up mere 3% on impact of one-time tax reversal

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ICICI Lombard General Insurance’s net profit rose a mere 3 per cent y-o-y to ₹968 crore in Q2, due to a higher base last year, owing to a tax provision reversal. Excluding the one-time impact, the profit after tax was up 19.2 per cent for the six-month period ended September.

For Q2 FY24, the profit after tax fell 2.2 per cent to ₹577 crore, but was up 24.8 per cent excluding the impact of the provision reversal.

Gross Direct Premium Income (GDPI) grew 18.2 per cent to ₹12,472 crore, higher than the industry growth of 14.9 per cent.

Growth in the health and travel GDPI was driven by accelerating growth in areas of health distribution, the insurer said, adding that the retail health agency vertical grew 21.7 per cent y-o-y in Q2 FY24, and bancassurance and Key Relationship Groups by 24.3 per cent.

Ratios

Combined ratio, a measure of profitability, stood at 103.7 per cent (104.6 per cent).

Loss ratio for the motor portfolio declined to 65.8 per cent (72.0 per cent). The share of commercial vehicle in the motor GDPI fell to 21.6 per cent from 23.4 per cent, while for private cars and two-wheeler rose 70 bps and 101 bps, respectively.

However, loss ratio for the fire segment worsened significantly to 71.7 per cent from 48.5 per cent, and for the engineering segment to 90.5 per cent (74.1 per cent). Overall loss ratio was 72.3 per cent (72.5 per cent).

Solvency ratio stood at 2.59 per cent on September 30 as against 2.53 per cent a quarter ago. The insurer has declared an interim dividend ₹5 per share.