ICICI Lombard General Insurance Company has reported strong financial results for the quarter ended September 30, 2024. The company’s net premium earned increased by 16.64% year-on-year (YoY) to ₹5,025.57 crore, compared to ₹4,306.09 crore in the corresponding quarter of the previous year.
The company also delivered a notable rise in net profit, with a 20.65% YoY growth. The net profit after tax (PAT) for the quarter stood at ₹693.95 crore, up from ₹573.27 crore in Q2 FY23. The growth in profit was driven by a higher contribution from investment income and lower claims during the quarter. The company’s combined ratio, however, increased to 104.5% from 103.9% YoY.
Key Financial Highlights:
- Net premium earned: ₹5,025.57 crore, up 16.64% YoY (from ₹4,306.09 crore in Q2 FY23).
- Net profit (PAT): ₹693.95 crore, up 20.65% YoY (from ₹573.27 crore in Q2 FY23).
- Gross premium written: ₹6,948.30 crore, up from ₹6,272.32 crore in the same period last year.
- Income from investments: ₹842.65 crore, up from ₹742.72 crore YoY.
Segmental Performance:
Below is the segment-wise performance of ICICI Lombard for Q2 FY24, showing both net premium earned and underwriting losses across key segments:
| Segment | Net Premium Earned (Sep 30, 2024) | Net Premium Earned (Sep 30, 2023) | YoY Growth (%) | Underwriting Loss (Sep 30, 2024) | Underwriting Loss (Sep 30, 2023) | YoY Loss Increase (%) |
|---|---|---|---|---|---|---|
| Motor Insurance | ₹502.56 crore | ₹430.60 crore | 16.7% | ₹12.34 crore | ₹10.98 crore | 12.4% |
| Health, Travel & PA | ₹83.22 crore | ₹70.95 crore | 17.4% | ₹14.55 crore | ₹12.78 crore | 13.8% |
| Crop Insurance | ₹30.01 crore | ₹28.94 crore | 3.7% | ₹8.78 crore | ₹8.22 crore | 6.8% |
| Fire & Engineering | ₹67.38 crore | ₹60.83 crore | 10.8% | ₹18.94 crore | ₹16.29 crore | 16.2% |
| Marine Insurance | ₹19.48 crore | ₹16.72 crore | 16.5% | ₹9.89 crore | ₹8.76 crore | 12.9% |
Operational Highlights:
ICICI Lombard continues to improve its operating efficiency, with total expenses rising to ₹5,186.48 crore compared to ₹4,453.24 crore in the prior-year quarter. Despite the increase in expenses, the company reported a robust underwriting profit of ₹66.42 crore, showcasing its ability to manage claims and expenses effectively.
The company also recorded significant investment income of ₹842.65 crore during the quarter, contributing to its overall profitability. Commissions and brokerage income came in at ₹844.72 crore, showing consistent performance in this area.
Conclusion:
ICICI Lombard General Insurance’s strong growth in net premium earned and net profit in Q2 FY24 reflects its solid market position and ability to effectively manage its operations. With net premium earned up by 16.64% YoY and net profit rising by 20.65%, the company remains well-positioned for sustained growth in the coming quarters.
