Private sector ICICI Lombard General Insurance on Wednesday posted a 17.9 per cent increase in net profit for the fourth quarter ended March 31, 2018, at ₹212 crore. Its profit after tax stood at ₹179 crore in the fourth quarter of 2016-17.
Similarly, net profit in 2017-18 rose by 22.8 per cent at ₹862 crore, compared to ₹702 crore in 2016-17.
The net profit would be even higher at 30.2 per cent for 2017-18 if the writing back of ₹40 crore excess tax provision in 2016-17 is taken into account.
“The company became the fourth-largest player in the general insurance market in 2017-18,” ICICI Lombard said in a statement.
Its gross direct premium income increased by 15.25 per cent at ₹12,357 crore in 2017-18 from ₹10,725 crore in the preceding year.
The company’s combined ratio also improved to 100.2 per cent compared to 103.9 per cent in 2016-17, driven by reduction in loss ratio at 76.9 per cent from 80.4 per cent in the preceding year in spite of adverse crop loss experience.
The general insurer also paid an interim dividend of ₹1.50 per share during the year, and its board has proposed a final dividend of ₹2.50 per share for the whole of 2017-18.
“The overall dividend for 2017-18, including the proposed final divided, is ₹4 per share,” the company said in a statement.
With the expected launch of the National Health Protection Scheme this fiscal, ICICI Lombard is also optimistic about growth and said it expects the industry to grow at 15 to 20 per cent in 2018-19.