Earnings Outlook
ICICI Lombard General Insurance Q1 PAT seen down 3% on yr
This story was originally published at 15:43 IST on 14 July 2025
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By Siddhi Chauhan
MUMBAI – ICICI Lombard General Insurance Co. Ltd.'s bottom line for the June quarter is expected to be marred by low momentum in the automobiles sector, and early onset of monsoon driving health insurance claims, brokerages tracking the insurer said. Moreover, recent changes in the accounting of long-term health insurance policies are also likely to weigh on the general insurer's profitability.
According to the average of five brokerages, the general insurance company is seen posting a net profit of INR 5.63 billion in Apr-Jun, nearly down 3% on year, but up 10.5% from the previous quarter. Estimates for net profit of the company ranged from INR 3.97 billion to INR 6.20 billion. The highest estimate for net profit was INR 6.2 billion from Sharekhan, while the lowest estimate of INR 3.97 billion was given by Yes Securities.
The net premium income of ICICI Lombard is seen rising 12.9% on year but falling 2.7% sequentially to INR 50.85 billion in the latest quarter, according to the average of estimates. Estimates for net premium income for the company ranged from INR 49.36 billion to INR 53.85 billion.
The change in accounting norms for long-term policies will continue to affect the premium growth of the non-life insurer in Apr-Jun, 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.
"We expect ICICI Lombard's performance to be tempered by low new vehicle sales, leading to 6% growth in the motor business in the first two months of the quarter. The share of commercial lines likely remains low for now," Kotak Institutional Equities said. "Health companies remain under pressure from high medical inflation, as the early onset of rains this year likely led to a higher frequency of infectious claims."
Emkay Global Financial Services, which sees the general insurer's profit after tax at INR 5.9 billion, expects a slight improvement in the combined ratio in the June quarter. "We estimate the claims ratio to improve by 30 bps (basis points) on year, led by better underwriting," the brokerage said. "Commission ratios are expected to improve on year on the back of impact of the 1/n regulations. Resultantly, we expect the Combined Ratio to improve on year by 110 bps to 101.2%."
The combined ratio is a measure of profitability used by an insurance company to gauge how well it is performing in its daily operations. A ratio below 100% indicates that the company is generating an underwriting profit, while a ratio above 100% means it is paying out more money in claims than it is receiving in premiums. In the quarter ended March, the combined ratio worsened by 20 bps to 102.5%, including the impact of the IRDAI guidelines.
Sharekhan sees the loss ratio to remain stable in Apr-Jun. The loss ratio represents the ratio of losses to premiums earned. The company will announce its Apr-Jun earnings on Tuesday. On Monday, shares of ICICI Lombard General Insurance ended 0.4% higher at INR 2,019.70 on the National Stock Exchange.
Following are the Apr-Jun 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) |
| Emkay Global Financial Services Ltd | 50,803.00 | 5,902.00 |
| JM Financial Institutional Securities Pvt Ltd | 50,754.00 | 6,000.00 |
| Kotak Institutional Equities | 49,362.00 | 6,089.00 |
| Sharekhan Ltd | 49,500.00 | 6,200.00 |
| YES Securities (India) Ltd | 53,854.00 | 3,968.00 |
| Average |
50,854.60 |
5,631.80 |
End
Edited by Tanima Banerjee
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