ICICI Lombard, one of the leading general insurance companies in India, has reported a significant surge in its net profit for the fourth quarter of the fiscal year 2020-21. According to reports, the company’s net profit jumped by 40% during the quarter, driven by strong growth in premium income and investment returns.
ICICI Lombard’s net profit for the quarter ended March 31, 2021, stood at Rs 346 crore, up from Rs 247 crore in the same quarter of the previous fiscal year. The company’s total income for the quarter increased by 7.4% to Rs 3,493 crore, compared to Rs 3,249 crore in the corresponding period last year.
The significant growth in ICICI Lombard’s net profit was attributed to the increase in net earned premium, which grew by 13.5% to Rs 2,270 crore, up from Rs 2,002 crore in the same quarter last year. The company’s investment income also witnessed a substantial rise, growing by 85% to Rs 582 crore from Rs 315 crore in the corresponding period last year.
In addition to strong growth in premium income and investment returns, ICICI Lombard also reported an improvement in the combined ratio during the quarter. The company’s combined ratio, which is the measure of underwriting profitability, improved to 100.7% from 104.1% in the same quarter last year.
Commenting on the results, Bhargav Dasgupta, Managing Director and CEO of ICICI Lombard, said, “We have continued to deliver a steady performance despite the challenging environment. The fourth quarter of FY2021 was marked by strong growth in net earned premium, which contributed to the overall growth in our net profit.”
He added, “We remain focused on underwriting profitability and are continuously exploring new opportunities to enhance our product portfolio and distribution channels.” We are confident that the strategies and investments we have undertaken will enable us to increase market share, strengthen our brand, and deliver superior value to our customers. Additionally, we remain committed to investing in innovative solutions that improve customer experience and reduce operational costs. Our aim is to become a trusted partner for our customers, delivering high quality services that drive success.
ICICI Lombard’s strong financial performance during the fourth quarter comes at a time when the Indian insurance industry is witnessing significant growth due to increased awareness and demand for insurance products. The COVID-19 pandemic has also led to a surge in demand for health and life insurance products in the country, further boosting the growth prospects for the industry.
At ICICI Lombard, we are committed to making insurance more accessible and affordable for the Indian customer. We have invested heavily in technology to provide a seamless experience to our customers, from policy purchase to claims settlement. Our strong distribution network across India has enabled us to successfully reach out to customers in both urban as well as rural areas.
ICICI Lombard is one of the major players in the Indian insurance industry, with a wide range of products in the general insurance segment, including motor, health, travel, home, and commercial insurance. The company is a joint venture between ICICI Bank Limited and Fairfax Financial Holdings Limited, with ICICI Bank holding a majority stake of 51%.
Overall, ICICI Lombard’s strong financial performance in the fourth quarter reflects the company’s resilience and ability to navigate through the challenges posed by the pandemic. The company’s focus on underwriting profitability and product innovation is expected to drive its growth in the coming years, as it continues to expand its presence in the Indian insurance market.
