ICICI Lombard General Q4FY25 results: Profit down 1.9% at Rs 510 crore

ICICI Lombard General Insurance’s net profit slipped by 1.90 per cent year-on-year (Y-o-Y) in the last quarter of FY25 (Q4 FY25) to Rs 509.6 crore from Rs 519.5 crore in Q4 FY24, tracking muted growth in premium across lines of business.

 

The gross direct premium income (GDPI) of the largest private general insurer was up by 2.27 per cent Y-o-Y to Rs 6,211 crore in the quarter after the insurance regulator introduced 1/N accounting norms. Hence, the numbers are not comparable with last year.

 

The Insurance Regulatory and Development Authority of India (Irdai) changed the format of reporting premium figures, whereby non-life insurance companies were asked to report long-term premiums on the basis of 1/N, where N is the number of days of the policy. The norms were effective from October 1, 2024.

 

 

The company registered a growth of 8.3 per cent Y-o-Y, excluding crop insurance, for Q4 FY25. In the commercial line, the company registered 2.8 per cent Y-o-Y growth. In the motor segment, the growth was 0.1 per cent in Q4 FY25, as against the industry growth of 6.9 per cent.

 

“As indicated during the last quarter, government expenditure remained flat, which impacted the commercial line segment growth for the current quarter. However, we have started seeing an uptick in government spending towards capital expenditure in the past few months. This may be a positive for the commercial line of business,” said Sanjeev Mantri, managing director and chief executive officer, ICICI Lombard General Insurance, in a post-earnings analyst call.

 

In the auto industry, the company saw growth in Q3 FY25, mainly in the two-wheeler and tractor segments. However, in Q4 FY25, there was a de-growth of 1.9 per cent in the two-wheeler segment and 4.6 per cent in the tractor segment. This indicates softer rural demand, the management said during the call.

 

“The private car segment grew by 1.1 per cent, and the commercial vehicle segment saw a de-growth of 3.8 per cent for Q4 of financial year 2025, as reported by FADA, which had an impact on motor insurance growth for Q4 of financial year 2025. However, for the coming year, the auto industry is expected to have mid-single-digit growth. We remain positive about the motor insurance business with increasing penetration in the old vehicle segment,” Mantri added.

 

The measure of profitability for the general insurer — the combined ratio — stood at 102.50 per cent in Q4 FY25, as against 102.30 per cent in Q4 FY24. The claims ratio also increased to 71.60 per cent from 68.60 per cent in the same period last year.

 

The solvency ratio of the general insurer stood at 269 per cent, as against the regulatory mandate of 150 per cent, in the reported quarter. It was 262 per cent in Q4 FY24.