ICICI Lombard Reports 48% Surge in Q1FY25 Net Profit
2 Sources
2 Sources
[1]
ICICI Lombard net profit rises 48% to Rs 580 crore in Q1FY25 - Times of India
Mumbai: ICICI Lombard General Insurance has reported a net profit of Rs 580 crore for the quarter ended June 2024, an increase of 48.7% compared to Rs 390 crore in the same period of the previous fiscal year. In the first quarter of the fiscal year 2025, the company's gross direct premium income (GDPI) was Rs 7688 crore, showing a growth of 20.4% from Rs 6387 crore in Q1 FY2024.This growth rate exceeded the industry average of 13.3%. Excluding crop and mass health, ICICI Lombard's GDPI growth was 19.7%, still surpassing the industry growth rate of 14.8% during the same period. The alrgest private insurer also showed improvement in its combined ratio (ratio of claims and management expenses to premium), which stood at 102.3% for Q1 FY2025, down from 103.8% in Q1 FY2024. The profit before tax (PBT) saw a rise of 48.8%, amounting to Rs 774 crore in Q1 FY2025, up from Rs 520 crore in Q1 FY2024. The company's capital gains for the quarter were Rs 284 crore, compared to Rs 123 crore in the same period last year. Return on Average Equity (ROAE) increased to 19.1% in Q1 FY2025 from 14.7% in Q1 FY2024. Despite a slight decrease, ICICI Lombard maintained a robust solvency ratio of 2.56x as of June 30, 2024, compared to 2.62x as of March 31, 2024. This remains well above the minimum regulatory requirement of 1.50x. At the end of the first quarter the share of premium from motor insurance increased to 31% from 29% a year ago. The increase in motor insurance was entirely because of the increase in share of 'own damage' premium from 14% to 16%. Health, travel and personal accident accounted for 34% as against 33% last year. Fire insurance saw a decline from 20% to 17%. Highlighting its digital achievements, the company said that it issued 85 lakh policies, with 98.9% processed electronically, compared to 99.3% in FY2024. The company processed nine lakh claims during the quarter. The ILTakeCare app had over 10 million downloads by the end of the quarter, up from 9.3 million as of March 31, 2024. The net promoter score for claims dropped to 68 in the fourth quarter of 2024 from 70 in the third quarter of 2024. In June 2024, 58.4% of cashless authorizations for group health insurance were processed through AI, an increase from 56.7% in June 2023.
[2]
ICICI Lombard net profit rises 48% to Rs 580 crore in Q1FY25 - Times of India
Mumbai: ICICI Lombard General Insurance has reported a net profit of Rs 580 crore for the quarter ended June 2024, an increase of 48.7% compared to Rs 390 crore in the same period of the previous fiscal year. In the first quarter of the fiscal year 2025, the company's gross direct premium income (GDPI) was Rs 7688 crore, showing a growth of 20.4% from Rs 6387 crore in Q1 FY2024.This growth rate exceeded the industry average of 13.3%. Excluding crop and mass health, ICICI Lombard's GDPI growth was 19.7%, still surpassing the industry growth rate of 14.8% during the same period. The alrgest private insurer also showed improvement in its combined ratio (ratio of claims and management expenses to premium), which stood at 102.3% for Q1 FY2025, down from 103.8% in Q1 FY2024. The profit before tax (PBT) saw a rise of 48.8%, amounting to Rs 774 crore in Q1 FY2025, up from Rs 520 crore in Q1 FY2024. The company's capital gains for the quarter were Rs 284 crore, compared to Rs 123 crore in the same period last year. Return on Average Equity (ROAE) increased to 19.1% in Q1 FY2025 from 14.7% in Q1 FY2024. Despite a slight decrease, ICICI Lombard maintained a robust solvency ratio of 2.56x as of June 30, 2024, compared to 2.62x as of March 31, 2024. This remains well above the minimum regulatory requirement of 1.50x. At the end of the first quarter the share of premium from motor insurance increased to 31% from 29% a year ago. The increase in motor insurance was entirely because of the increase in share of 'own damage' premium from 14% to 16%. Health, travel and personal accident accounted for 34% as against 33% last year. Fire insurance saw a decline from 20% to 17%. Highlighting its digital achievements, the company said that it issued 85 lakh policies, with 98.9% processed electronically, compared to 99.3% in FY2024. The company processed nine lakh claims during the quarter. The ILTakeCare app had over 10 million downloads by the end of the quarter, up from 9.3 million as of March 31, 2024. The net promoter score for claims dropped to 68 in the fourth quarter of 2024 from 70 in the third quarter of 2024. In June 2024, 58.4% of cashless authorizations for group health insurance were processed through AI, an increase from 56.7% in June 2023.
Share
Share
Copy Link
ICICI Lombard General Insurance Company has reported a significant 48% increase in net profit for Q1FY25, reaching Rs 580 crore. The company's performance shows strong growth in various segments and improved profitability.
ICICI Lombard's Q1FY25 Financial Performance
ICICI Lombard General Insurance Company, one of India's leading private sector general insurance companies, has reported a remarkable 48% increase in net profit for the first quarter of the fiscal year 2025 (Q1FY25). The company's net profit surged to Rs 580 crore, up from Rs 390 crore in the same period last year
1
.Growth in Gross Direct Premium Income (GDPI)
The insurer witnessed a substantial growth in its Gross Direct Premium Income (GDPI), which rose by 16.5% year-on-year to Rs 5,711 crore in Q1FY25. This growth outpaced the industry growth rate of 14.9% for the same period, indicating ICICI Lombard's strong market position and business expansion strategies
1
.Segment-wise Performance
ICICI Lombard reported robust growth across various insurance segments:
- Motor insurance: 16.9% growth
- Health insurance: 21.6% growth
- Commercial lines: 13.2% growth
These figures demonstrate the company's ability to capitalize on diverse market opportunities and maintain a balanced portfolio
2
.Improvement in Combined Ratio
The company's combined ratio, a key metric in the insurance industry that measures profitability and financial health, improved to 103.3% in Q1FY25 from 104.1% in the previous year. This improvement indicates enhanced operational efficiency and better risk management practices
1
.Related Stories
Solvency Ratio and Return on Average Equity (ROAE)
ICICI Lombard maintained a strong solvency ratio of 2.58x as of June 30, 2023, well above the minimum regulatory requirement of 1.50x. This demonstrates the company's financial stability and ability to meet its obligations. Additionally, the Return on Average Equity (ROAE) for Q1FY25 stood at an impressive 20.1%, reflecting the company's efficient use of shareholders' equity to generate profits
2
.Market Share and Distribution Network
The company's market share in the GDPI of the industry increased to 8.8% in Q1FY25, up from 8.6% in the previous year. ICICI Lombard continues to expand its distribution network, with 305 branches and over 79,000 agents and channel partners as of June 30, 2023
1
.References
Summarized by
Navi
[1]
[2]
Related Stories
Weekly Highlights
Weekly Highlights
Today's Top Stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
