ICICI Lombard General Insurance Company (ICICIGI) Q4 15/16 earnings summary

Executive summary

• FY2016 gross written premium (GWP) reached ₹83.07bn, up 20.2% YoY; overall market share rose to 8.4% from 7.9%.

• Profit before tax was ₹7.08bn despite adverse weather and catastrophic events; profit after tax was ₹5.07bn.

• Policies issued rose 13.9% to 15.80mn, while 1.62mn claims were settled; customer grievances declined 17%.

Financial highlights

• GWP was ₹83.07bn versus ₹69.14bn in FY2015; earned premium was ₹48.22bn versus ₹42.35bn.

• Profit before tax increased to ₹7.08bn from ₹6.91bn; profit after tax fell to ₹5.07bn from ₹5.36bn.

• Investment income rose to ₹11.57bn from ₹9.28bn; total investment assets were ₹115.63bn at March 31, 2016.

• Basic and diluted EPS were ₹11.35 and ₹11.27, respectively, versus ₹12.03 and ₹11.93 in FY2015.

• Adjusted for the change in provisioning on aged government receivables, FY2016 PBT was ₹802.24mn higher; outstanding premiums were higher by the same amount.

Outlook and guidance

• Management highlighted low insurance penetration of 0.7% of GDP and expected asset acquisition and protection needs to support industry growth.

• Priorities included customer service, technology investment, risk management and growth across corporate and retail lines.

• Focus remained on profitable travel group and domestic business, selective corporate health underwriting and profitable SME products.