For the quarter (Q1FY22), the insurer posted an underwriting loss of Rs 508.16 crore in the wake of rising health claims due to COVID-19.
Private non-life insurer ICICI Lombard General Insurance posted a 61.9 percent year-on-year (YoY) drop in its June quarter (Q1) net profit at Rs 151.63 crore due to an underwriting loss amidst rise in COVID-19 claims.
For the quarter (Q1FY22), the insurer posted an underwriting loss of Rs 508.16 crore. In the year-ago period, there was an underwriting profit of Rs 38.16 crore.
The rise in underwriting loss was on account of increase in health claims amidst the second wave of COVID-19. Loss ratios in health segment rose to 153.2 percent in Q1 as against 75.5 percent a year ago.
This means that for every Rs 100 collected as premium, Rs 153.2 is paid out as claim.
Underwriting loss in health retail stood at Rs 182.81 crore in Q1 as against loss of Rs 15.10 crore a year ago. In group health, the underwriting loss stood at Rs 413.17 crore in June quarter as against Rs 28.40 loss a year ago.
The combined ratio stood at 121.3 percent in Q1FY22 compared to 99.7 percent in the year-ago period, primarily driven by the second wave of the pandemic during the quarter.
“The combined ratio includes COVID-19 impact on health book of Rs 602 billion in Q1FY22 as against Rs 20 crore in Q1FY21 and Rs 339 crore in FY21,” said the insurer.
The Gross Direct Premium Income (GDPI) of the company stood at Rs 3,733 crore, showing a YoY growth of 13 percent. This was in line with the industry growth.
Solvency ratio was 2.76x at the end of June 30, 2021 as against 2.90x on March 31, 2021 and higher than the minimum regulatory requirement of 1.50x.