PERFORMANCE FOR THE HALF YEAR ENDED SEPTEMBER 30, 2021----ICICI Lombard General Insurance

PERFORMANCE FOR THE HALF YEAR ENDED SEPTEMBER 30, 2021----ICICI Lombard General Insurance

(The effect of the de-merger in the financials has been incorporated in the form of opening net worth as on April 1, 2021. Further, the financials for the current year represent numbers of the merged entity, accordingly Q1 FY2022 has been restated. The comparative numbers for the previous year in the financials pertain to standalone ICICI Lombard and hence are not comparable.)

·         Gross Direct Premium Income (GDPI)of the Company was at₹86.13billionin H1 FY2022as against₹64.91billion in H1 FY2021.Excluding crop segment,GDPI of the Company increased to ₹80.30 billion in H1 FY2022as against₹64.59 billion inH1FY2021.The industry growth for the same period (excluding crop segment) was16.9%.

o   GDPI of the Company was at₹44.24 billion in Q2 FY2022as against₹31.89 billionin Q2 FY2021. Excluding crop segment, GDPI of the Company increased to ₹38.41 billion in Q2 FY2022as against₹31.86billion in Q2 FY2021. The industry growth (excluding crop segment) for Q2 FY2022was17.5%.

·         Combined ratiowas114.3% inH1 FY2022as against99.8% inH1 FY2021.Excluding the impact of flood and cyclone losses of ₹ 0.82 billion, the combined ratio was 113.0% in H1 FY2022 as against 97.5% in H1 FY2021 excluding the impact of cyclone and flood losses of ₹ 1.07 billion. This includes the impact of Covid claims on health book of ₹ 5.61 billion in H1 FY2022 as against ₹ 1.15 billion in H1 FY2021.

o   Combined ratio was105.3% in Q2 FY2022as against99.7% in Q2 FY2021. Excluding the impact of flood and cyclone losses of ₹ 0.50 billion, the combined ratio was 103.7% in Q2 FY2022 as against 96.6% in Q2 FY2021 excluding the impact of cyclone and flood losses of ₹ 0.77 billion.

·         Profit before tax (PBT)was at₹8.52billion in H1 FY2022as against₹10.86billion inH1 FY2021. This includes the impact of Covid claims on health book of ₹ 5.61 billion in H1 FY2022 as against ₹ 1.15 billion in H1 FY2021.Whereas PBT was at₹5.94billion in Q2 FY2022as against₹5.55 billion in Q2 FY2021.

o   Capital gains werehigher at ₹4.71billion in H1 FY2022as against₹1.84billion in H1 FY2021. Capital gains were at ₹1.44billion in Q2 FY2022as against₹1.24 billion in Q2 FY2021.

·         Consequently, Profit after tax (PAT)was at₹6.41billion in H1 FY2022as against ₹8.14billion in H1 FY2021 whereas PAT stood at₹4.46billion in Q2 FY2022as against₹4.16billion in Q2 FY2021.

·         Return on Average Equity (ROAE) was 15.2% inH1 FY2022as against to 24.9% inH1 FY2021 while ROAE was 21.0% in Q2 FY2022as against to 24.7% in Q2 FY2021.

·         Solvency ratio was 2.49xatSeptember 30, 2021as against 2.61x at June 30, 2021and higher than the minimum regulatory requirement of 1.50x.Solvency ratio was 2.90x at March 31, 2021.

·         The Board of Directors of the company has declared interim dividend of ₹ 4.00 per share for H1 FY2022.

Operating Performance Review

(₹billion)

Financial Indicators

Q2 FY2022

Q2 FY2021

H1

H1

FY2021

FY2022

FY2021

GDPI

44.24

31.89

86.13

64.91

140.03

PBT

5.94

5.55

8.52

10.86

19.54

PAT

4.46

4.16

6.41

8.14

14.73

Ratios

Financial Indicators

Q2 FY2022

Q2 FY2021

H1

H1

FY2021

FY2022

FY2021

ROAE (%) – Annualised

21.0%

24.7%

15.2%

24.9%

21.7%

Combined Ratio

105.3%

99.7%

114.3%

99.8%

99.8%

Notes:

Combined Ratio = (Net Incurred Claims/ Net Earned Premium) + (Management Expenses – Commission on Reinsurance)/ Net Written Premium

Management Expenses = Commission Paid Direct + Commission Paid on Reinsurance inward+ Operating expenses related to insurance business

Return on Average Equity(ROAE) = Profit AfterTax / ((Opening Net Worth + Closing Net Worth)/2)

Net Worth = Share Capital + Reserves& Surplus

About ICICI Lombard General Insurance Company Limited

We are one of the leading private sector non- life insurers in India. We offer our customers a comprehensive and well-diversified range of products, including motor, health, crop, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels. More details are available at www.icicilombard.com

For further press queries please get in touch with Ms. Seema Jadhav +91 70459 26209 or email to corporate.communication@icicilombard.com

For investor queries please get in touch with Mr. Sarvesh Agrawal +91 70450 91174or send an email to sarvesh.agrawal@icicilombard.com / ir@icicilombard.com

Disclaimer

Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for insurance and other related services in the countries that we operate or where a material number of our customers reside, the continued service of our senior management, our ability to successfully implement our strategy, including our use of the Internet and other technology our exploration of merger and acquisition opportunities, our ability to integrate mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our growth and expansion in domestic and overseas markets, technological changes, our ability to market new products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the outcome of any internal or independent enquiries or regulatory or governmental investigations, investment income, cash flow projections, impact of competition; the impact of changes in capital, solvency ratio, exposure to reputational risk, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in insurance regulations and other regulatory changes in India and other jurisdictions on us. ICICI Lombard General Insurance Company Limited undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.