homefinance NewsWe received 380 claims on back of Cyclone Biparjoy, 70% of these already settled: ICICI Lombard's CFO
We received 380 claims on back of Cyclone Biparjoy, 70% of these already settled: ICICI Lombard's CFO
Cyclone Biparjoy, which struck India in June, brought significant damage to infrastructure and property (including houses and businesses) throughout a number of states.
Gopal Balachandran, Chief Financial Officer (CFO) and Chief Risk Officer at ICICI Lombard on Monday said that the insurance firm received 380 claims on the back of Cyclone Biparjoy and 70 percent of these have already been settled. Cyclone Biparjoy, which struck India in June, brought significant damage to infrastructure and property (including houses and businesses) throughout a number of states.
Global geospatial technology solutions consultancy RMSI earlier assessed the that Biparjoy could lead to an approximately estimated economic loss of about Rs 830 crore ($100million) due to wind, storm surge, and flooding for the exposure elements considered.
On the recent Delhi floods, Balachandran said the impact will be clear in 1-2 weeks. Several parts of the city are still heavily waterlogged after the recent extreme rainfall and flooding, car engines and electrical systems are all stressed out. While some insurance companies have witnessed an increase in claims on account of this, others are saying that claims may increase once things gets settled and individuals get time to report the damages.
Balachandran comments come a day after ICICI Lombard General Insurance Company reported a 12 percent year-on-year (YoY) increase in net profit at Rs 390.4 crore for the first quarter that ended June 30, 2023. The CFO said that motor is the preferred and competitive segment and the company is guarded in the driving motor book.
"We have got all the levers in place to drive growth. Health segment grew by 40 percent in the first quarter of FY24. While the first segment is likely to remain tepid for the year, by end of FY25 we can see combined ratio coming down to 102 percent," he told CNBC-TV18.
Meanwhile, ICICI Lombard's premium income, or gross direct premium income (GDPI), rose 18.9 percent to Rs 6,387 crore in the first quarte, beating the industry growth of 17.9 per cent in the June quarter. The return on average equity (ROAE) was 14.7 percent in the first quarter of FY24 against 15 percent in the first quarter of FY23. The solvency ratio was 2.53x as of June 30, 2023 compared to 2.51x as of March 31, 2023, which was higher than the minimum regulatory requirement of 1.5x.
The combined ratio stood at 103.8 percent for Q1 of FY24 compared to 104.1 percent for Q1 of FY23. However, excluding the impact of the cyclone of Rs 35 crore, the combined ratio was 102.9 percent for Q1 of FY24.
Commenting on the earnings, Bhargav Dasgupta, MD & CEO at ICICI Lombard, said, “Our strong performance in Q1 reflects our unwavering commitment to delivering value to our stakeholders. Despite challenging market conditions, we have managed to achieve robust growth and maintain profitability. This is a testament to the resilience of our business model, the dedication of our team, and the trust placed in us by our customers”
(Edited by : Anshul)
First Published: Jul 19, 2023 12:07 PM IST
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