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Informist, Tuesday, Jul. 15, 2025

By Shubham Rana

NEW DELHI - ICICI Lombard General Insurance Co. Ltd. Tuesday reported a year-on-year increase in net profit for the quarter ended June against expectations of a on year fall in the net profit. The insurance company's net profit for Apr-Jun rose 29% on year to INR 7.47 billion.

Sequentially, the net profit was up 47%. Analysts had estimated ICICI Lombard's net profit at INR 5.63 billion, down 3% on year.

Shares of ICICI Lombard General Insurance Tuesday ended 0.8% lower at INR 2,002.70 on the National Stock Exchange. The company announced its earnings after market hours. 

Net profit was supported by a fall in the company's underwriting loss during Apr-Jun. ICICI Lombard's underwriting loss moderated to INR 2.93 billion during Apr-Jun from INR 3.47 billion a year ago. Operating profit jumped 30% on year to INR 6.54 billion as total income increased 14% to INR 60.83 billion and total expenses grew 12% to INR 54.29 billion. 

The insurer said its June quarter figures were not comparable with data from prior years due to a change in accounting norms. According to Insurance Regulatory and Development Authority of India norms, non-life insurers have 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. 

Net premium written rose 5% on year to INR 56.11 billion for the quarter ended June. Net premium earned was INR 51.36 bln during Apr-Jun, up 14% on year, which was the lowest year-on-year pace of growth in six quarters. 

The insurer saw a sharp rise in premium income from the retail health segment, which rose 44% on year to INR 4.51 billion during Apr-Jun. Net premium earned from corporate health segment was INR 14.34 billion, up 10%. Premium income from motor insurance segment increased 14% to INR 26.75 billion.

ICICI Lombard paid claims worth INR 29.11 billion during the quarter ended June, up 10% on year. Expenditure on net commissions increased 17% on year to INR 9.41 billion last quarter.

The insurer's gross direct premium income rose just 0.6% on year to INR 77.35 billion in Apr-Jun, against the industry growth of 8.8%, it said in a press release. Excluding the impact of the new IRDAI regulation, gross direct premium income grew 4.8% for the June quarter against industry growth of 12.8%, the company said.

The solvency ratio was 2.70 times as of Jun. 30 compared with 2.69 times a quarter ago and 2.56 times a year ago. Solvency ratio was also higher than the minimum regulatory requirement of 1.50 times. The incurred claim ratio for ICICI Lombard was 73.0% as on Jun. 30, higher than 71.6% a quarter ago but lower than 74.0% a year ago. 

The combined ratio rose to 102.9% as of Jun. 30 against 102.5% a quarter ago and 102.3% a year ago. Combined ratio is a measure of an insurer's underwriting performance, with a ratio below 100% showing underwriting profit.  End

Edited by Akul Nishant Akhoury

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