ICICI Lombard General Insurance reported a 19 per cent increase in second quarter net profit at ₹204 crore against ₹171 crore in the year-ago period.
The board of directors of the company has approved payment of the second interim dividend of ₹0.75 an equity share of face value ₹10 each for the second quarter. The private sector general insurer said that henceforth the board would consider dividend on half-yearly basis.
Gross written premiums were up 17 per cent year-on-year (y-o-y) to ₹3,234 crore. Premium earned (net) increased 11 per cent y-o-y to ₹1,811 crore. Income from investments in the reporting quarter was a shade lower at ₹279 crore (₹295 crore in the year-ago quarter). Commissions andbrokerage (net) paid increased 13.6 per cent to ₹117 crore. Expenses relating to business support services rose 27 per cent to ₹218 crore. Sales promotion expenses jumped 57 per cent to ₹116 crore.
Claims paid climbed 17 per cent to ₹964 crore. Underwriting loss came down to ₹85 crore from ₹128 crore in the year-ago quarter.
Bhargav Dasgupta, MD and CEO, said the underwriting loss came down as the combined ratio (incurred losses + expenses/earned premiums) improved from 108.6 per cent in September 2016 to 102.9 per cent in September 2017.
A combined ratio below 100 per cent is considered as an underwriting profit.
ICICI Lombard’s shares ended at ₹717.90 apiece, up 3.10 per cent over the previous close on the BSE.