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Private sector ICICI Lombard General Insurance posted a 5 per cent increase in net profit at ₹307.91 crore in the second quarter of the fiscal. It had posted a net profit of ₹293.10 crore in the same period a year ago.
However, with losses in crop insurance, the gross direct premium income of the private sector general insurer fell by 16.4 per cent to ₹2,953 crore in the July to September 2019 quarter, against ₹3,530 crore a year ago.
“Excluding crop segment, GDPI of the company increased to ₹2,898 crore in the second quarter of 2019-20, compared to ₹2,530 crore in the second quarter of 2018-19, registering a growth of 14.5 per cent. The industry growth (excluding crop segment) for the second quarter was 15.4 per cent,” it said in a statement on Friday.
Bhargav Dasgupta, MD and CEO, said the company has not been able to write any crop business this year. “Reinsurance terms have turned adverse to insurance companies, so it doesn’t make sense. Rates on ground are more aggressive,” he said, adding that the focus is more on motor, retail health, SME business, and fire insurance.
The board of directors also declared an interim dividend of ₹3.50 per share for the first half of the fiscal year. The general insurer’s scrip closed flat at ₹1,243.85 apiece on the BSE on Friday.
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