Analyst Meet / AGM     18-Oct-17
Conference Call
ICICI Lombard General Insurance Company
Targets 15-20% annual growth in premium for next 4-5 years
ICICI Lombard General Insurance Company conducted a conference call on 17 October 2017 to discuss its financial results for the quarter ended September 2017. Bhargav Dasgupta, Managing Director & CEO and Gopal Balachandran, Chief Financial Officer of the Company addressed the call:

Highlights:

  • The company held its first earnings call after having become the first non-life insurance company to be listed on the stock exchanges of India on 27 September 2017.
  • The company is the largest private-sector non-life insurer in India based on gross direct premium income in FY2017, and that position maintained since FY2004. The business model of the company focuses on driving long term premium income growth, well balanced with profitability over the long term.
  • The company has developed a multi-product, multi-distribution structure. It offers a comprehensive product portfolio, including motor, health, crop, fire, personal accident, marine, engineering and liability insurance to its customers.
  • The company has adopted a multi-channel distribution model enabling to reach 618 out of 716 districts of India. It sources premium directly and through brokers, bank partners, corporate agents as well as individual agents.
  • On the aspect of settling claims speedily, the company settled 99.98% health claims within 30 days in Q2 FY2018. The company has placed a lot of emphasis on handling claims seamlessly deploying dedicated resources as well as the latest technology to ensure a hassle-free experience for customers in their hour of need.
  • The company is also very particular when it comes to disclosures and it has been disclosing reserving triangles since FY2016 in Annual report.
  • The Gross Direct Premium (GDPI) of the company increased 16.7% to Rs 6494 crore in H1FY2018 compared to Rs 5565 crore in H1FY2017.
  • The portfolio wise contribution to GDPI from motor insurance stood at 38%, health and personal accident at 17%, crop insurance at 25% and property at 20%. Within the health portfolio, the retail contributed 63.1%, while corporate served 36.9%% of health GDPI in Q2 FY2018.
  • On the profitability front, the combined ratio improved to 102.8% in Q2 FY2018 from 108.6% in Q2 FY2017, while loss ratio improved to 78.5% in Q2 FY2018 from 83.8% in Q2 FY2017. Claims incurred include losses of Net claims of Rs 18 crore on account of the recent floods in Q2 FY2018.
  • The crop business is showing high loss ratio of 114.1% in H1FY2018. The company has decided to grow below market in the crop segment, while expects the share of crop to be below 25% by March 2018.
  • The net profit of the company galloped 19.3% to Rs 204 crore in Q2FY2018 from Rs 171 billion in Q2FY2017. ROE was healthy as 20.2% in Q2FY2018 compared to 20.0% in Q2FY2017.
  • The company holds the largest total investment assets among the private-sector non-life insurers in India. Its investment assets rose to Rs 16763 crore end September 2017. Investment leverage (net of borrowings) was 3.93x end September 2017.
  • The Solvency ratio was at 2.18x end September 2017 as against 2.03x end September 2016 and higher than the minimum regulatory requirement of 1.50x. The higher retained earnings have supported an improvement in solvency ratio.
  • The company has declared an Interim dividend of Rs 0.75 per share for Q2FY2018. Going forward, the company will consider dividend proposals on a half-yearly basis.
  • The company would remain focused on building a sustainable business franchise that aims at ensuring profitable growth in the long term with prudent risk selection, conservative reserving practices while keeping customers at the center of focus at all times.
  • On expense ratio front, the company is in investment mode and it may restrict further improvement in expense ratio. The company also has one of the lowest expense ratio in the industry, providing limited scope for improvement.
  • As per the company, the industry has been growing at the annual pace of 15-17% for last five years, while it is poised for steady growth for next 4-5 years. The company expects to grow business at 15-20% for next 4-5 years.
Previous News
  ICICI Lombard General Insurance Company standalone net profit declines 61.91% in the June 2021 quarter
 ( Results - Announcements 23-Jul-21   09:36 )
  ICICI Lombard General Insurance Company
 ( Results - Analysis 19-Oct-22   01:27 )
  ICICI Lombard General Insurance Company receives IRDAI approval for appointment of MD & CEO
 ( Corporate News - 07-Oct-23   12:42 )
  ICICI Bank to acquire up tp 4% additional in ICICI Lombard General Insurance Company
 ( Corporate News - 29-May-23   09:04 )
  ICICI Lombard General Insurance Co. to conduct board meeting
 ( Corporate News - 29-Dec-21   11:54 )
  ICICI Lombard General Insurance Company standalone net profit rises 35.02% in the September 2020 quarter
 ( Results - Announcements 24-Oct-20   08:01 )
  ICICI Lombard General Insurance Co. schedules board meeting
 ( Corporate News - 08-Jul-20   11:47 )
  ICICI Lombard General Insurance Company receives affirmation in credit rating on subordinated debt
 ( Corporate News - 16-Sep-23   11:00 )
  ICICI Lombard General Insurance Co. to discuss results
 ( Corporate News - 08-Jan-21   10:09 )
  ICICI Lombard General Insurance Company fixes record date for interim dividend of Rs 4
 ( Market Beat - Reports 05-Mar-21   17:21 )
  Board of ICICI Lombard General Insurance Co. recommends interim dividend
 ( Corporate News - 06-Mar-21   10:22 )
Other Stories
  Elecon Engineering
  20-Mar-24   15:02
  Shivalik Bimetal Controls
  10-Mar-24   23:54
  Lakshmi Machine Works
  10-Mar-24   23:51
  Cummins India
  10-Mar-24   23:48
  Larsen & Toubro
  10-Mar-24   23:45
  Techno Electric and Engineering
  05-Mar-24   10:04
  Schaeffler India
  20-Feb-24   11:37
  CIE Automotive India
  20-Feb-24   10:43
  Deepak Nitrite
  16-Feb-24   08:11
  ISGEC Heavy Engineering
  16-Feb-24   00:04
Back Top