MUMBAI: Country’s largest private sector general insurer ICICI Lombard, which reported a net profit of Rs 306 crore last fiscal, is likely to break even on the underwriting front soon, a top company official said.
The company also said it has improved its combined ratio to 98.6 per cent last fiscal from 99.9 per cent in FY12.
“Underwriting loss without motor pool is close to break even. It was marginally negative last fiscal…We are moving towards breakeven,” ICICI Lombard General Insurance executive director Nilesh Garg told PTI in an interaction here.
Under-writing is the process through which insurance firms evaluate the risks of insuring a particular person or asset and use that information to set premium pricing for policies.
According to the city-based general insurer, the loss due to motor pool was around Rs 250 crore last fiscal.
“Things are looking better for the current financial year,” Garg said.
He also said after implementation of declined motor pool system, losses in the pool came down, which stood at around Rs 175 crore for the industry.
Referring to average price rise in motor premium of 20 per cent by the insurance regulator, Garg said though things were moving in right direction, the recent increase was inadequate to cover losses.
The general insurance company reported a profit of Rs 306 crore last fiscal (FY13) against a net loss of Rs 400 crore in FY12.
According to the general insurer, it had an investment income of around Rs 560 crore in the last fiscal.
Garg said the company is optimistic about growth prospects in the current financial year and it would be able to maintain the momentum of last fiscal.
The private general insurer is promoted by ICICI BankBSE -0.22 % and Canada-based Fairfax Financial Holding with the former holding majority stake in the joint venture.
Source :The Economics Times.
Date : 19/05/2013