ICICI Lombard General Insurance Q3 Results: Net profit rises 68% to Rs 724 crore

ICICI Lombard General Insurance Company Limited revealed its most recent October-December quarter fiscal 2024–25 (Q3FY25) on Friday. ICICI Lombard General Insurance reported a remarkable 67.9 per cent  increase in net profit for the October-December quarter of FY25, reaching  Rs 724.4 crore compared to  Rs 431.5 crore in the same period last year. This growth was primarily driven by higher capital gains.

The company’s gross premiums saw a slight decline of 0.3 per cent , dropping to  Rs 6,214 crore from  Rs 6,230 crore in Q3 FY24. This decrease was attributed to a regulatory change implemented by the Insurance Regulatory and Development Authority of India (IRDAI) in October 2024, which introduced a new accounting method for long-term insurance products.

"With effect from October 1, 2024, Long-term Products are accounted on a 1/n basis, as mandated by IRDAI; hence Q3 & 9M FY2025 are not comparable with prior years," said ICICI Lombard in an exchange filing.

ICICI Lombard: Growth in Key Segments

Premium growth was robust in several segments. Retail health insurance premiums grew by 25 per cent , while corporate health insurance premiums increased by 12 per cent . Motor insurance, the company’s largest segment, recorded a 17 per cent  rise in premiums, reaching  Rs 2,560 crore. However, the company did not provide a detailed breakdown of premiums from new and old vehicle insurance.

Profitability and solvency indicators reflected positive trends. The return on average equity (ROAE) rose to 21.5 per cent , up from 15.3 per cent  in the same quarter last year. The solvency ratio stood at 2.36x as of December 31, 2024, well above the regulatory minimum of 1.50x, although slightly lower than the 2.65x reported in the previous quarter.

ICICI Lombard: Combined Ratio and Claims Paid

The combined ratio, which measures the insurer’s efficiency in managing claims and expenses relative to premiums earned, improved to 102.7 per cent  from 103.6 per cent  a year earlier, indicating better underwriting profitability. Claims paid during the quarter rose by 19 per cent  year-over-year, reflecting an increase in claim settlements.

ICICI Lombard noted that the results for Q3 FY25 and the nine-month period are not directly comparable with previous years due to the IRDAI’s new accounting framework for long-term products, which became effective in October 2024.

ICICI Lombard: Key Decisions

"Based on the recommendation of the Board Nomination and Remuneration Committee, the Board of Directors of the Company have approved appointment of Mr. Girish Sehgal, Chief - Customer Experience, Support and Operations, as Key
Management Person (“KMP”) and Senior Management Personnel (“SMP”) of the Company, with effect from January 21, 2025" as per filing.