Mumbai: Floods claims across the country, losses in motor insurance and volatility in the capital market impacted the second quarter earnings of the country’s largest private non-life insurer ICICI Lombard General Insurance. The insurer that had last year grown in double digits on the back of crop insurance business cautiously did not do any crop insurance for the six months of this fiscal which resulted in a decline in business growth. Crop insurance had constituted 17 per cent of the total business last year.
The Profit After Tax (PAT) grew by 6.1 per cent to Rs 618 crore during Apr to Sept. 30, 2019 as against Rs 582 crore whereas PAT grew by 5 per cent to Rs 308 crore in Q2 FY2020 from Rs 293 crore. Further, PAT for H1 and Q2 of the previous year had the benefit of one off reinsurance recovery of `58 crore.
The Gross Direct Premium Income (GDPI) of the insurer de-grew by 16 per cent to `2,953 crore during the Q2 ended Sept. 30, 2019 compared to `3,530 crore in Q2 FY2019. Similarly, the GDPI de-grew by 12 per cent to `6,440 crore. Excluding crop segment, the GDPI increased to `6,386 crore in H1 FY2020 compared to Rs 5,495 crore.