Stock Market update: ICICI Lombard shares down by 5% post Q3 results

Shares of ICICI Lombard shares fell by 5% at Rs 1351.75 per equity share in today’s trade on NSE.

The shares of insurance company ICICI Lombard fell by 5% in today’s trade. The share price hit at Rs 1351.75 per share. Today’s trade opened with the share price of Rs 1394.00 per equity share representing a decrease of 2.04% and marking today’s high.

The country’s leading private-sector non-life insurance company ICICI Lombard General Insurance announced its financial report results for the quarter ending December 2021 on Wednesday. The company reported an increase of 1.28% in net profit to Rs 318 crore in the October–December quarter (Q3FY22). However, the net profit was down by 29%.

The company’s gross direct premium income rose 16 percent to Rs 4,699 crore in the quarter ending December 2021 as compared to Rs 4,034 crore in the same period of the previous financial year and investment income saw a 20 per cent growth to Rs 532.23 crore.

Following this, the company’s underwriting losses increased in Q3FY22 to Rs 269.19 crores as compared to Rs 100.73 in the previous quarter and Rs 135.41 crore in Q3FY21.

“In the current quarter, we are reporting combined numbers with the book that has come in from Bharti Axa general insurance. We have always been saying on a proforma basis, their combined ratio and ours put together was around 104 per cent. From now on, we will have to see how we will see the synergy benefits so that combined ratio comes under control”, said Bhargav Dasgupta, MD&CEO of ICICI Lombard.

“Generally, there has been a very aggressive market share grabbing approach followed by some of the players to show growth and that has impacted our overall pricing and cost structure,” he further said. The net revenue of ICICI Lombard General Insurance in FY2021 stood at Rs 2472.46 crores whereas in FY2020 stood at 2024.10.

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