ICICI Lombard Profit Rises 29% on Narrower Underwriting Loss

ICICI Lombard General Insurance posted a 29% year-on-year increase in net profit to ₹7.47 billion for the June quarter, outperforming market expectations of a decline. Sequentially, profit rose 47%, well above the consensus estimate of ₹5.63 billion, which had implied a 3% annual drop.

The profit growth was driven by a sharp reduction in underwriting losses and improved income from retail health and motor insurance. Underwriting losses narrowed to ₹2.93 billion, from ₹3.47 billion a year earlier, while operating profit rose 30% to ₹6.54 billion. Total income grew 14% to ₹60.83 billion, with expenses up 12% at ₹54.29 billion.

Net written premium rose 5% year-on-year to ₹56.11 billion, while net earned premium increased 14% to ₹51.36 billion—the slowest annual growth in six quarters. The company noted that comparisons were affected by new norms introduced by the Insurance Regulatory and Development Authority of India, which now require non-life insurers to account for premiums on an annual basis.

The retail health segment saw premium income rise 44% on year to ₹4.51 billion. Corporate health grew 10% to ₹14.34 billion, while motor insurance premiums increased 14% to ₹26.75 billion.

Claims paid during the quarter rose 10% year-on-year to ₹29.11 billion. Net commissions were up 17% at ₹9.41 billion.

Gross direct premium income posted modest growth of 0.6% to ₹77.35 billion, underperforming the industry rate of 8.8%. Adjusting for regulatory changes, gross written premium rose 4.8%, still trailing the industry’s 12.8% growth, the company said.

The solvency ratio stood at 2.70x as of 30 June, slightly above 2.69x in the previous quarter and well above the regulatory minimum of 1.50x. The incurred claim ratio rose to 73%, from 71.6% in the March quarter, and 74% a year ago. The combined ratio edged up to 102.9% from 102.5%.