ICICI Lombard Q4 net up 19% to Rs 519.50 cr driven by premium growth

Private sector general insurer ICICI Lombard reported an 18.9% increase in its net profit to Rs 519.50 crore in the January-March quarter of the financial year 2023-24 from Rs 436.96 crore in the corresponding year-ago period, driven by healthy growth in premium and investment income.

Sequentially, the net profit grew by 20.40% from Rs 431.46 crore in the third quarter of FY24.

The gross direct premium income (GDPI) of the insurer was 22% higher at Rs 6,073 crore in Q4 FY24 from Rs 4,977 crore in Q4 FY23.

The net premium income rose by 17.23% to Rs 4,368 crore in the quarter under review from Rs 3,726 crore year-on-year (YoY). The net investment income of the company improved nearly 15% YoY to Rs 765.55 crore from Rs 665.93 crore. Capital gains of the company were at Rs 156 crore in Q4 FY24 as against Rs 159 crore in Q4 FY23.

The combined ratio of the insurer stood at 102.2% in Q4 FY24 compared to 104.2% in Q4 FY23.

During FY24, the GDPI of the company rose 17.8% YoY to Rs 24,776 crore from Rs 21,025 crore in FY23. Excluding crop and mass health, the GDPI growth of the company was 17.1% YoY up in FY24.

In FY24, the combined ratio of the company stood at 103.3% compared to 104.5% for FY23. Excluding the impact of catastrophes (CAT losses) of Rs 137 crore, the combined ratio was 102.5% in FY24.

Speaking on the target of a combined ratio at 102%, Gopal Balachandran, CFO of ICICI Lombard, said, “The market momentum that we are seeing in the way things are getting shaped up, we would obviously explore opportunities in terms of how we could look at accelerating that 102% combined by the end of FY25.

The company's board of directors has proposed a final dividend of Rs 6 per share for FY24. The payment is subject to the approval of shareholders in the ensuing annual general meeting of the company. The overall dividend for FY24, including the proposed final dividend, is Rs 11 per share.