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ICICI Lombard Gen Insurance Q4 net profit rise 18.9 pc to Rs 520 cr

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NewsDrum Desk
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Mumbai, Apr 17 (PTI) Largest private sector general insurer ICICI Lombard on Wednesday reported an 18.9 per cent increase in its March quarter net profit to Rs 520 crore and sounded confident about the industry growth in the new fiscal.

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The city-based company had reported a post-tax net profit of Rs 437 crore in the year-ago period.

In 2023-24, the company reported an 11 per cent growth in the profit after tax at Rs 1,919 crore against Rs 1,729 crore in the year-ago period.

The gross direct premium income (GDPI) grew 22 per cent to Rs 6,073 crore for the reporting quarter from Rs 4,977 crore a year ago, 9.5 per cent higher year-on-year, it said.

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The combined ratio, which is calculated by dividing the sum of claim-related losses and expenses by earned premiums, came at 102.2 per cent in the March quarter compared to 104.2 per cent.

The ratio for FY24 came at 103.3 per cent, and the company's managing director and chief executive Sanjeev Mantri told reporters that it is targeting to get it at 102 per cent for FY25.

He said FY24 has been good for the overall industry and the company has been able to outpace the industry's growth as well, and sounded optimistic about the new fiscal year, saying there are tailwinds, which can work in its favour.

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If one were to exclude crop and mass health, the GDPI growth of the company was 22 per cent for the quarter, which was higher than the industry growth of 13.8 per cent.

Mantri said the industry will continue to grow at 13-15 per cent in FY25.

The solvency ratio was 2.62 times at March 31, 2024, against 2.57 times at December 31, 2023, and 2.51 times in the year-ago period.

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Mantri said he expects regulatory reforms in the new fiscal, and added that a strong team and a focus on technology-enabled offerings can help it.

The company's returns on the investment book grew to 7.98 per cent in FY24 from 7.50 per cent in FY23. Mantri said factors like elevated interest rates helped.

At present, equities constitute 11.4 per cent of the investment book, and the company will continue to look at both fixed income and equity investments in the future as well, he said.

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About 5-6 per cent of the aggregate revenues come from the ICICI group.

Mantri said there is a scope to increase the same by relying more on the parent for distribution.

It has also tied up with aggregator Policybazaar recently.

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The company also announced that ICICI Group veteran Rakesh Jha has been appointed as the chairperson from June 30, subject to Irdai approval, once the incumbent Lalita Gupte retires.

It has appointed Steve Dsouza as the chief risk officer, replacing the incumbent Gopal Balachandran, who will continue as the chief financial officer.

The company board has proposed a final dividend of Rs 6 per share for FY24, which will take the overall payout to Rs 11 per share.

The ICICI Lombard GI scrip closed 1.24 per cent up at Rs 1,649.05 apiece on the BSE on Tuesday. PTI AA BAL BAL

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