Q1 Results Live: ICICI Lombard Profit Rises Nearly 29%; HDB Financial NII Up 18%

Vibha Padalkar, MD and CEO:

• Aggressive pricing has resulted in non-par share coming down.

• Industry will be slow in the first half on strong base.

• Expecting growth to pick up from second half onwards.

• Margins will be range bound for this year.

• In the next 3-5 years there is a scope of growth expansion.

Source: Earnings Con Call

The net premium earned during the quarter under review climbed 14% to Rs 5,136 crore, compared to Rs 4,503.88 crore in the corresponding quarter of the previous fiscal.

The gross premium has risen by 1.5% to Rs 8,052.55 crore, as compared to Rs 7,931.05 crore in the year-ago period.

The underwriting loss stood at Rs 293.14 crore, narrower as compared to Rs 346.6 crore in the corresponding quarter of the past fiscal.

The combined ratio, which serves as a key metric to measure insurers' profitability and financial health, stood at 102.9%, higher by 60 basis points as compared to 102.3% in the year-ago period.

ICICI Lombard Q1 Highlights (YoY)

• Net Profit rises 28.7% to Rs 747 crore versus Rs 580 crore.

• Total Income rises 13.7% to Rs 6,083 crore versus 5,352 crore.

Vibha Padalkar, MD and CEO:

• Product and distribution strategy is well positioned to meet houshold demands.

• HDFC Life outperforms private insurers.

• ULIP Demand remained strong.

• Participating product have gained attraction.

• Non-par annuity grew by 20%.

• Agent additions remain strong.

Source: Earnings Con Call

Analysts at JPMorgan and Nuvama downgraded the stock, while Jefferies upgraded it after the results were announced on Monday. Out of the 47 analysts tracking the company, 18 each have a 'buy' and 'hold' rating. Eleven have a 'sell' call on the stock, according to Bloomberg data. The average of 12-month price targets of Rs 1,675, implies a return potential of 3.4%.