MIRA INFORM REPORT

 

 

Report Date :

22.02.2013

 

IDENTIFICATION DETAILS

 

Name :

ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED

 

 

Registered Office :

ICICI Bank Towers, Bandra-Kurla Complex, Mumbai – 400 051, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

30.10.2000

 

 

Com. Reg. No.:

11-129408

 

 

Capital Investment / Paid-up Capital :

Rs. 4365.839 Millions

 

 

CIN No.:

[Company Identification No.]

U67200MH2000PLC129408

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMI03974F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Insurance Services.

 

 

No. of Employees :

4264 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (57)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD  60000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a Joint Venture between ICICI Bank Limited, India and Fairfax Financial Holdings Limited, Canada. It is a well established and reputed company having fine track record. There appears some losses being recorded by the company in the current year i.e. 2012. However, networth appears to be good. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Claims Paying Ability = iAAA

Rating Explanation

Highest claims paying ability fundamentally strong position, Prospect of meeting policy holder obligations is the best

Date

January 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION DECLINED

 

Management non Co-operative (91-22-61961100)

 

LOCATIONS

 

Registered Office :

ICICI Bank Towers, Bandra-Kurla Complex, Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-26531414

Fax No.:

91-22-26531230

E-Mail :

vajesh.saxena@icicibank.com

vikas.mehta@icicilombard.com

customersupport@icicibank.com

Website :

http://www.icicilombard.com

 

 

Corporate Office :

Zenith House Keshav Rao, Khadye Marg, 2nd Floor, Opposite Race Course, Mahalaxmi, Mumbai – 400 034, Maharashtra, India

Tel. No.:

91-22-24906999

E-Mail :

insuranceonline@icicilombard.com

 

 

Mailing Address :

ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Chanda Kochhar

Designation :

Chairperson

 

 

Name :

R. Athappan

Designation :

Director

 

 

Name :

B.V. Bhargava

Designation :

Director

 

 

Name :

Dileep Choksi

Designation :

Director

 

 

Name :

Zarin Daruwala

Designation :

Director (w.e.f. October 18, 2010)

 

 

Name :

N.S. Kannan

Designation :

Director

 

 

Name :

S. Mukherji

Designation :

Director

 

 

Name :

Chandran Ratnaswami

Designation :

Director

 

 

Name :

M.K. Sharma

Designation :

Director

 

 

Name :

H. N. Sinor

Designation :

Director

 

 

Name :

Bhargav Dasgupta

Designation :

Managing Director and Chief Executive Officer

 

 

Name :

Alok Kumar Agarwal

Designation :

Executive Director (w.e.f. January 19, 2011)

 

 

Name :

Neelesh Garg

Designation :

Executive Director (w.e.f. January 19, 2011)

 

 

KEY EXECUTIVES

 

Board Governance Committee :

v      M.K. Sharma (Chairman)

v      Chanda Kochhar

v      Chandran Ratnaswami

v      H. N. Sinor

 

 

Investment Committee :

 

v      Chandran Ratnaswami (Chairman)

v      N.S. Kannan (Director)

v      Bhargav Dasgupta

v      Liyaquat Khan Appointed Actuary

v      S. Gopalakrishnan

v      Rakesh Jain (upto October 20, 2011)

v      Rajive Kumaraswami (upto April 13, 2012)

v      Gopal Balachandran (w.e.f. October 20, 2011)

 

 

Audit Committee :

 

v      Dileep Choksi (Chairman)

v      R. Athappan

v      S. Mukherji

v      H. N. Sinor

 

 

Risk Management Committee :

 

v      S. Mukherji (Chairman)

v      R. Athappan

v      H. N. Sinor

v      Bhargav Dasgupta

 

 

Policyholder Protection Committee :

 

v      M.K. Sharma (Chairman)

v      S. Mukherji

v      Chandran Ratnaswami

v      Bhargav Dasgupta

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2012         

 

Category of Shareholders

 

No. of Shares

Percentage of Holding

Promoters

 

 

- Indian

320635518

73.44%

- Foreign

112655031

25.80%

Others - Employees

3293364

0.76%

 

 

 

Total

 

436538913

100.00%

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Insurance Services.

 

 

Services :

General Insurance

 

 

GENERAL INFORMATION

 

No. of Employees :

4264 (Approximately)

 

 

Bankers :

ICICI Bank Limited

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name 1 :

PKF Sridhar and Santhanam

Chartered Accountants

 

 

Name 2 :

Khandelwal Jain and Company

Chartered Accountants

 

 

Holding Company :

ICICI Bank Limited

 

 

Fellow Subsidiary :

·         ICICI Bank UK PLC

·         ICICI Eco-net Internet and Technology Fund

·         ICICI Emerging Sectors Fund

·         ICICI Equity Fund

·         ICICI Home Finance Company Limited

·         ICICI Prudential Asset Management Company Limited

·         ICICI Prudential Life Insurance Company Limited

·         ICICI Securities Limited

·         ICICI Securities Primary Dealership Limited

·         ICICI Strategic Investments Fund

·         ICICI Venture Funds Management Company Limited

 

 

Venture in Joint Venture :

FAL Corporation (Affiliate of Fairfax Financial Holdings Limited)

 

 

CAPITAL STRUCTURE

 

As on 14.06.2012

 

Authorised Capital: Rs.4500.000 Millions

 

Issued, Subscribed & Paid-up Capital: Rs.4370.031 Millions

 

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

450000000

Equity Shares

Rs.10/- each

Rs.4500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

436583913

Equity Shares

Rs.10/- each

Rs.4365.839 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

4365.839

4045.672

4036.327

2] Share Application Money (Pending Allotment)

1.882

3402.304

1.870

3] Reserves & Surplus

14201.514

11262.593

12694.906

4] (Accumulated Losses)

(3986.753)

0.000

0.000

5] Fair value change account

495.909

729.314

1191.293

NETWORTH

15078.391

19439.883

17924.396

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

15078.391

19439.883

17924.396

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3995.973

3881.266

1433.378

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

60336.193

46652.974

37605.728

DEFERRED TAX ASSETS

261.721

472.868

452.876

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000
0.000
0.000

 

Sundry Debtors

0.000
0.000
0.000

 

Cash & Bank Balances

4257.374
3900.055
503.447

 

Other Current Assets

0.000
25948.950
26257.374

 

Loans & Advances

36400.293
1430.752
1067.365

Total Current Assets

40657.667
31279.757

27828.186

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

1841.090

1801.418

1423.852

 

Other Current Liabilities

68288.545
46614.085
35312.528

 

Provisions

20043.528
14431.479
12659.392

Total Current Liabilities

90173.163
62846.982
49395.772

Net Current Assets

(49515.496)
(31567.225)
(21567.586)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

15078.391

19439.883

17924.396

 


PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

1. Operating profit/(loss)

 

 

 

(a) Fire Insurance

(236.023)

(270.698)

51.145

(b) Marine Insurance

(209.368)

(222.018)

52.525

(c) Miscellaneous Insurance

(4223.486)

(1313.590)

47.850

 

 

 

 

2. Income from investments

 

 

 

(a) Interest /Dividend & Rent – Gross

872.639

915.583

783.696

(b) Profit on sale/redemption of investments

179.494

452.785

858.855

Less : loss on sale/redemption of investments

(50.551)

(20.401)

(95.566)

 

 

 

 

3. Other income

 

 

 

(a) Interest income on tax refund

32.381

13.410

0.000

(b) Profit on sale/discard of fixed assets

15.467

11.399

2.422

Total (A)

(3619.447)

(433.530)

1700.927

 

 

 

 

4. Provisions (Other than taxation)

 

 

 

(a) For diminution in the value of investments

0.000

0.000

0.000

(b) For doubtful debts

279.591

270.369

30.670

(c) Others

0.000

0.000

0.000

 

 

 

 

5. Other expenses

 

 

 

a) Expenses other than those related to Insurance Business

 

 

 

(i) Employees’ remuneration and benefits

10.098

11.615

6.345

(ii) Managerial remuneration

9.206

1.206

0.000

(iii) Directors’ fees

0.660

0.740

0.640

(b) Bad debts written off

0.735

25.000

0.000

(c) Loss on sale/discard of fixed assets

32.408

80.960

80.219

Total (B)

332.698

389.890

117.874

 

 

 

 

Profit / (Loss) before tax

(3952.145)

(823.420)

1583.053

Provision for taxation:

 

 

 

(a) Current tax /MAT payable

0.000

0.000

227.180

Tax for earlier year- MAT

0.000

0.000

28.794

Less : MAT credit entitlement

0.000

0.000

(255.974)

(b) Deferred tax (Income) / Expense

211.147

(19.992)

143.774

(c) Fringe benefit tax

0.000

0.000

0.000

Profit / (Loss) after tax

(4163.292)

(803.428)

1439.279

 

 

 

 

Appropriations

 

 

 

(a) Interim dividends paid during the year

0.000

565.889

645.248

(b) Proposed final dividend

0.000

0.000

0.000

(c) Dividend distribution tax

0.000

93.994

109.660

(d) Transfer to General Reserves

0.000

105.190

107.946

 

 

765.073

862.854

 

 

 

 

Balance of Profit / (Loss) brought forward from last year

176.539

1745.040

1168.615

 

 

 

 

Balance carried forward to Balance sheet

(3986.753)

176.539

1745.040

 

 

 

 

Earning Per Share (Rs.)

 

 

 

- Basic

(9.56)

(1.99)

3.57

- Diluted

(9.56)

(1.99)

3.51

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(8.85)
(2.34)

5.41

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.26)
(0.04)

0.09

 

 

 
 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.00
0.00

0.00

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

0.45
0.50

0.56

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS:

(Rs. In Millions)

Particulars

31.03.2012

31.03.2011

 

31.03.2010

 

 

 

 

Sundry Creditors

1841.090

1801.418

1423.852

 

 

 

 

Total

 

1841.090

1801.418

1423.852

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

No

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

CHARGES DETAILS

 

Entity

Competent Authority

Regulatory Charges

Regulatory Action(S) / Date of Order


ICICI Lombardgeneral Insurance Company Limited

 

IRDA

Did not exercise due diligence in terms of clause 5 of guidelines in matter of renewal of licence of corporate agents

 

Did not refer application to irda for exercising powers vested in it under IRDA act, 1999 and IRDA (licensing of corporate agents) regulations, 2002 in matter of grant of license to corporate agents

Imposed penalty Rs.0.500 Million

07-January-2011


ICICI Lombardgeneral Insurance Company Limited

 

IRDA

Did not follow proper claim procedure


delayed reply to IRDA

Directed to modify claim procedure Rs.0.00

directed to use effective grievance re-dressal mechanism Rs.0.00

30-August-2010


ICICI Lombardgeneral Insurance Company Limited

 

IRDA

Allowed maximum discount in pravasi bharatiya bima yojana policies across the board without exercising discretion to the facts of each case

Imposed penalty Rs.0.500 Million

14-May-2008


ICICI Lombardgeneral Insurance Company Limited

 

IRDA

Did not follow file and use guidelines at the time of renewal of mega risk policy for refineries division of Indian Oil Corp. Limited.

 

Did not submit photocopy of placement slip to IRDA in matter of renewal of mega risk policy for refineries division of Indian Oil Corp. Limited.

Imposed penalty Rs.0.500 Million

09- January-2008

 

 

BACKGROUND

 

Subject was incorporated on October 30, 2000 and is a joint venture between ICICI Bank Limited and Fairfax Financial Holdings Limited. The Company obtained Regulatory approval to undertake General Insurance business on August 3, 2001 from the Insurance Regulatory and Development Authority (‘IRDA’) and has also obtained its certificate of renewal of registration with validity until March 31, 2013.

 

 

INDUSTRY OVERVIEW

 

The gross premium of the industry for the period April 2011 - March 2012 grew from Rs.445.35 billion to Rs.547.62 billion on a year-on-year basis, a growth of about 23%. The market share of private sector General Insurance companies for the corresponding period grew marginally from 40.1% to 41.1%. ICICI Lombard led the private players in General Insurance sector with a market share of 22.9% and an overall industry market share of 9.4% (including specialised health insurance companies).

 

 

FINANCIAL HIGHLIGHTS

 

Insurance Regulatory and Development Authority (IRDA) in FY2011 had instructed all General Insurance companies to provisionally provide for pool losses at 153% loss ratio for underwriting years 2008 to 2011, subject to peer review of the report. Accordingly, Subject had provided additionally Rs.2.72 billion in FY2011 towards third party pool reserves and infused capital to maintain the desired solvency ratio.

 

IRDA had carried out the peer review of the report of consultant actuary to evaluate the liabilities of the third party pool reserves and assess the adequacy of reserves through Government Actuary’s Department (GAD), U.K. Based on the report, IRDA vide order dated January 3, 2012 had directed all General Insurance companies to provide reserves based on the ultimate loss ratios at the lower end i.e. 159%, 188%, 200% and 213% respectively for underwriting years 2008 to 2011.

 

IRDA vide its order dated March 22, 2012 further directed all insurers that liabilities related to the Pool for underwriting years 2008 and 2009 be accounted and recognised in full in FY2012. In respect of the liabilities pertaining to underwriting years 2010 to 2012, IRDA has given a choice to either recognise the liabilities in FY2012 itself or treat it as an expense over a period of three years on straight line basis, beginning FY2012. Further through a separate order issued on same date, IRDA declared the ultimate loss ratio for underwriting year 2012 at 145%.

 

 

The Company recognised additional liability of Rs. 6.85 billion pertaining to motor third party pool in FY2012. This includes provision of additional liability for underwriting year 2008 of Rs. 0.98 billion since the actual loss experience has exceeded the ultimate loss ratio prescribed at the lower end of GAD estimate.

 

 

Based on above, the Company has reported loss after tax of Rs. 4.16 billion in FY2012. The solvency margin ratio of the Company at March 31, 2012 stood at 136% which is above the requirement of 130% prescribed by IRDA for FY2012.

 

IRDA had also ordered for dismantling of existing Indian Motor Third Party Insurance Pool (IMTPIP) with effect from March 31, 2012 and set up a framework for Indian Motor Third Party Declined Risk Insurance Pool (Declined Risk Pool) for commercial vehicles. The Declined Risk Pool is effective from April 1, 2012.

 

IRDA vide its order dated March 27, 2012 also announced an increase in the premium of motor third party liability cover effective April 1, 2012 in order to give effect to the higher loss ratios. The increase in premium rates with annual adjustments is based on the cost inflation index and other parameters such as average claim amount, frequency and expenses involved in servicing motor third party business.

 

 

WHISTLE BLOWER POLICY

 

Subject has a whistle blower policy which is designed to provide its employees, a channel for communicating instances of breach in the code of conduct, legal violation, actual or suspected fraud and other irregularities. The framework of the policy strives to foster responsible and secure whistle blowing.

 

REGISTRATION

The certificate of registration of Subject has been renewed by IRDA for FY2013.

 

 

CAPITAL

 

The total capital invested by shareholders till March 31, 2012 including share premium, was Rs. 18.25 billion. The net worth of Subject stood at Rs. 15.07 billion at March 31, 2012 as compared to Rs. 19.44 billion at March 31, 2011.

 

 

CONTINGENT LIABILITIES:

Rs. In Millions

Particulars

31.03.2012

31.03.2011

Statutory demands/liabilities in dispute, not provided for (Note)

728.615

392.421

 

 

 

 

Note: The Company has disputed the demand raised by Income Tax authorities of Rs. 655.071 Millions and Service Tax authorities of Rs. 73.544 Millions (previous year: Income tax of Rs. 392.421 Millions), the appeals of which are pending before the appropriate Authorities.

 

FIXED ASSETS

 

v      Goodwill

v      Intangibles – Computer Software

v      Land – Freehold

v      Leasehold Property

v      Buildings

v      Furniture and Fittings

v      Information Technology Equipment

v      Vehicles

v      Office Equipment

 

 

AS PER WEBSITE

 

PRESS RELEASES

 

ICICI LOMBARD AWARDED PRESTIGIOUS PORTER PRIZE

OCTOBER 11, 2012

 

MUMBAI, October 11, 2012 /PRNewswire/ --


Award Conferred in the Category 'Creating Shared Value' for Achieving Responsible Economic Success Through Sustainable Business Models

 

Recognizes ICICI Lombard's Initiatives in the Area of Mass and Micro Insurance for Economically Weaker Sections of Society

 

ICICI Lombard General Insurance Company Limited (ICICI Lombard), India's largest private sector General Insurance Company, has been awarded the prestigious Porter prize in the category 'Creating Shared Value'. The award bestowed by the Institute of Competitiveness and named after Professor Micheal E. Porter recognizes ICICI Lombard's efforts in achieving responsible economic success in the area of mass and micro insurance for the economically weaker sections of the society.

 

Commenting on the occasion, Mr. Bhargav Dasgupta, MD and CEO, ICICI Lombard GIC Limited. said, "We are honored to receive the coveted Porter Prize in the category 'Creating Shared Value'. ICICI Lombard has been the frontrunner in terms of product innovation in the insurance industry having pioneered the Weather Based Crop Insurance Scheme which has covered over 3 million farmers across 11 states till date. This award is a testimony to the fact that companies can meet social needs while better serving existing markets, accessing new ones, or lowering costs through innovation."

 

Dr. Amit Kapoor, Honorary Chairman, Institute for Competitiveness, India said, "The awards are a fitting recognition towards the efforts of industry leaders like ICICI Lombard who have been able to showcase exemplary strategic acumen for the larger benefit of society."

 

The award, being conferred for the first time in India, selected the best Indian companies through a three stage process assessing them on a robust framework. The central idea of the Porter Prize is to propel companies to compete on the basis of value creation, innovation and strategy. The premise behind creating shared value is the ability of a company in creating an efficient and mutually dependent ecosystem benefiting the associated communities while enhancing the competitiveness of the company. ICICI Lombard has successfully recognized and capitalized on this to foster societal and economic progress.

 

The Financial Inclusion Solutions Group at ICICI Lombard which manages the Weather Insurance portfolio has been continuously leveraging its product expertise and offering cost effective services supported by innovative technology solutions to reach the economically weaker sections of society. 

 

About ICICI Lombard General Insurance Company Limited.

 

ICICI Lombard GIC Limited is a joint venture between ICICI Bank Limited, India's second largest bank with consolidated total assets of over USD 91 billion at March 31, 2012 and Fairfax Financial Holdings Limited, a Canada based USD 30 billion diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management. 

 

ICICI Lombard GIC Limited is the largest private sector general insurance company in India with a Gross Written Premium (GWP) of Rs 53580.000 Millions for the year ended March 31, 2012. The company issued over 76 lakh policies and settled over 44 lakh claims and has a claim disposal ratio of 99% (percentage of claims settled against claims reported) as on March 31, 2012.


The company has been conferred the "Golden Peacock Award 2012" for Corporate Social Responsibility, "Golden Peacock Innovation Award-2010" for Rashtriya Swasthya Bima Yojana. It also received the "Skoch Financial Inclusion Award-2011" in the micro finance category. The company has been conferred with 'NASSCOM - CNBC TV18 IT User Award 2010' for Best Technology Implementation in the Insurance Sector. It has been awarded CNBC Awaaz Consumer Award 2010 for being the 'most preferred brand' in the General Insurance category. ICICI Lombard Auto Insurance has been rated highest in customer satisfaction by J.D. Power Asia Pacific in India among 11 auto insurance providers. It was awarded Customer and Brand Loyalty award in the 'Insurance Sector - Non-Life' at the 3rd Loyalty awards, 2010 and the 'General Insurance Company of the Year' at the 11th Asia Insurance Industry Awards.

 

 

ICICI LOMBARD GENERAL INSURANCE OVER RS. 15000.000 MILLIONS GROSS WRITTEN PREMIUM (GWP) IN Q2-FY '13

NOVEMBER 02, 2012

 

Maintains Leadership Position Among Private Players in GI Industry

Gross Written Premium at Rs. 1517.000 Millions

2 Mn Policies Issued in Q2-FY '13

Profit After Tax (PAT) at Rs. 1010.000 Millions

 

ICICI Lombard General Insurance Company Limited maintained its leadership position among the private sector General Insurance (GI) companies in Q2-FY '13 having garnered GWP of Rs. 15170.000 Millions. The impressive performance in GWP was on the back of robust growth (26.3%) in the number of policies issued (2 Mn) over the corresponding period in the previous financial year.

 

Registering a strong performance on the profitability front, the company crossed the Rs. 1000.000 Millions mark in profit after tax for a quarter having recorded PAT of Rs. 1010.000 Millions compared to Rs. 560.000 Millions for Q2-2012.

 

Commenting on the performance, Mr. Bhargav Dasgupta, Managing Director and CEO, ICICI Lombard General Insurance Company Limited said, "We are deeply encouraged by our performance last quarter as it reinforces the customer's confidence in our products and claim servicing capabilities. As we progress through the year, we shall strive hard to further enhance our service capabilities and launch new initiatives which will meet the constantly evolving needs of our customers."

 

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.48

UK Pound

1

Rs.82.71

Euro

1

Rs.72.23

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

NTH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

57

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.