ICICI Lombard General Insurance reported a significant increase in net profit for the third quarter of FY25, jumping 67.9% to ₹724 crore compared to ₹431 crore in the same period last year. The company’s net profit was boosted by a 155% surge in capital gains to ₹276 crore. However, the company’s gross domestic premium income (GDPI) declined marginally by 0.3% to ₹6,214 crore, underperforming the industry growth rate of 9.5%. The decline in GDPI was attributed to new regulatory norms requiring insurers to account for long-term policy premiums on a pro-rata (1/n) basis, rather than upfront. However, adjusting for this change, ICICI Lombard’s GDPI grew 4.8%.
The company’s combined ratio, which measures the proportion of claims and expenses to premium income, improved to 102.7% from 103.6% a year ago. Excluding catastrophe-related losses of ₹54 crore, the combined ratio stood at 102.3%. ICICI Lombard’s solvency ratio, which measures its financial stability, stood at 2.36 times as of December 31, 2024, indicating the company’s strong financial position.
The company’s strong performance is a testament to its ability to adapt to changing market conditions and regulatory requirements. The introduction of new norms on accounting for long-term policy premiums may have impacted the company’s GDPI, but ICICI Lombard has successfully managed to maintain its financial stability and growth. The company’s solvency ratio of 2.36 times is a strong indicator of its financial stability, providing confidence to its policyholders and investors. Overall, ICICI Lombard’s Q3 FY25 performance is a positive sign for the company and the industry as a whole.