Earnings Outlook
ICICI Lombard's PAT seen dn QoQ on lower premium income
This story was originally published at 20:17 IST on 11 April 2025
Register to read our real-time news.Informist, Friday, Apr. 11, 2025
By Kshipra Petkar
MUMBAI – ICICI Lombard General Insurance Co. Ltd.'s net profit is seen contracting sequentially in Jan-Mar on lower premium income. The net profit of the general insurer is likely to fall 15% quarter-on-quarter to INR 6.16 billion in Jan-Mar, according to an average of estimates by five brokerages. The estimates for the net profit ranged from INR 5.6 billion to INR 7.2 billion. The company will announce its results on Tuesday.
The change in accounting norms for long-term policies will continue to affect the premium growth of the non-life insurer in Jan-Mar, brokerages said. The Insurance Regulatory and Development Authority of India changed the accounting norms mandating non-life insurers to report premiums on an annual basis for all policies underwritten after Oct. 1. While non-life insurers can underwrite long-term policies, annually, premiums for only one year will be recorded, the guidelines said.
The net premium income of ICICI Lombard is seen falling by 7.3% on quarter to INR 47.11 billion, according to the average of estimates.
According to the latest data by the General Insurance Council, the gross direct premium underwritten fell 1.8% on year to INR 18.07 billion in March. The gross direct written premium in 2024-25 (Apr-Mar) rose 8.3% INR 268.33 billion.
Motilal Oswal said that while the claims environment will likely remain benign, a higher operating expense ratio due to the new accounting will drive up the combined ratio. The general insurer's combined ratio was 102.7% in Oct-Dec and 102.9% in Apr-Dec. Brokerages expect the combined ratio to rise to 103.4% in the latest quarter. Philip Capital sees the combined ratio at 101.9%, including the impact of new accounting impact. The combined ratio is a measure of an insurer's underwriting performance, with a ratio below 100% showing underwriting profit.
Two brokerages said they expect the loss ratios to improve. YES Securities expects the ratio to be higher sequentially due to the motor segment. The loss ratio represents the ratio of losses to premiums earned.
On Friday, shares of ICICI Lombard General Insurance closed 3.8% lower at INR 1,718.55 On the National Stock Exchange.
Following are the Jan-Mar earnings estimates for ICICI Lombard General Insurance based on reports from five brokerage firms in descending order of the estimate of net profit:
| Brokerages | Net Premium Income (in INR million) | Net Profit (in INR million) |
| YES Securities (India) Ltd | 47,394.00 | 7,216.00 |
| Kotak Institutional Equities | 49,447.00 | 6,129.00 |
| Sharekhan Ltd | 46,500.00 | 6,000.00 |
| Motilal Oswal Financial Services Ltd | 45,500.00 | 5,800.00 |
| PhillipCapital (India) Pvt Ltd | 46,708.00 | 5,673.00 |
| Average | 47,109.80 | 6,163.60 |
End
Edited by Saji George Titus
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