ICICI Lombard Q1 Results: Net income jumps 11.8% to Rs 390 crore as premiums rise - check highlights

ICICI Lombard Q1 Results: Leading general insurance company ICICI Lombard on Tuesday reported an 11.8 per cent growth in net income at Rs 390 crore for the three months ended June, driven by capital gains from investments and a higher premium income.

Gross Direct Premium Income (GDPI) or premium income rose 18.9 per cent at Rs 6,387 crore, beating the industry growth of 17.9 per cent in the June quarter.

Excluding crop insurance, GDPI growth was at 19.2 per cent, which was higher than the industry growth of 17.4 per cent, the company said in a statement.

The combined ratio, a key profitability metric, improved to 103.8 per cent in the reporting quarter compared to 104.1 per cent in Q1 FY23. Excluding the impact of cyclone of Rs 35 crore, the combined ratio was 102.9 per cent for the period under review.

A robust market helped the company book higher capital gains of Rs 123 crore in the first quarter of the current fiscal as against Rs 32 crore a year ago, increasing the net income by 11.8 per cent to Rs 390 crore from Rs 349 crore a year ago.

The net income was also boosted by a reversal of tax provision of Rs 128 crore from Q2FY23, the company said.

The solvency ratio stood at 2.53x as against 2.51x in March 2023, higher than the minimum regulatory requirement of 1.50x. This ratio is an indicator of the capital buffer.

The insurer's Managing Director Bhargav Dasgupta said despite challenging market conditions, it managed to achieve robust growth and maintain profitability.

The company has issued over 32.7 million policies, settled 3.6 million claims and has a gross written premium of Rs 21,772 crore for the year ended March 2023.

At the end of March, it had 305 branches and 12,865 employees.

ICICI Lombard Q1 Results: Key highlights 

• Gross Direct Premium Income (GDPI) of the Company stood at Rs 63.87 billion in Q1 FY2024 compared to Rs 53.70 billion in Q1 FY2023, a growth of 18.9%, which was higher than the industry growth of 17.9%. Excluding crop, GDPI growth of the Company was at 19.2%, which was higher than the industry growth of 17.4% in  Q1 FY2024. 
   
• Combined ratio stood at 103.8% for Q1 FY2024 compared to 104.1% for Q1 FY2023.
   
• Excluding the impact of cyclone of Rs 0.35 billion, the combined ratio was 102.9% for Q1 FY2024.
   
• Profit before tax (PBT) grew by 11.8% to Rs 5.20 billion in Q1 FY2024 as against Rs 4.65 billion in Q1 FY2023.
   
• Capital gains was at Rs 1.23 billion in Q1 FY2024 as against Rs 0.32 billion in Q1 FY2023. 
   
• Consequently, Profit after tax (PAT) grew by 11.8% to Rs 3.90 billion in Q1 FY2024 as against Rs 3.49 billion in Q1 FY2023.
   
• Return on Average Equity (ROAE) was 14.7% in Q1 FY2024 as against 15.0% in Q1 FY2023.
   
• Solvency ratio was 2.53x as at June 30, 2023 as against 2.51x as at March 31, 2023 which was higher than the minimum regulatory requirement of 1.50x.