ICICI Lombard General Insurance, the largest private sector non-life insurer in India, reported a net pre-tax profit of 34% & over all growth of 17 % for the FY 2019.
The company recorded growth of (17.2 percent) in Gross Direct Premium Income (GDPI) in FY19 compared to the industry growth rate of 12.9 percent. driven by motor insurance. It further consolidated its market share to around 8.5 percent.
The mandated longer-tenure third-party (TP) motor insurance by the Supreme Court benefitted ICICI Lombard disproportionately as its presence in the segment is well above the industry average. As a result, the share of TP motor insurance in product mix increased to 21 percent at the end of March as compared to 18 percent YoY.
The combined ratio, the measure of an insurance company’s profitability, improved to 98.5 percent in FY19 from 100.2 percent last year, leading to underwriting profit. This implies that the business growth was not only strong but also profitable. All segments reported a claim ratio below 100 percent. Investment income also grew by 18 percent.