ICICI Lombard Q1 PAT rises 12% on premium income growth

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ICICI Lombard General Insurance It posted a net profit of Rs 390 crore for the first quarter of FY24, up by 11.8 per cent year-on-year driven by steady growth in premium income and provision write-offs.

Gross direct premium income (GDPI) increased by 18.9% at Rs.6,387 crore, which was higher than the industry’s growth of 17.9%. Excluding crop insurance, GDP growth was 19.2 percent.

Increased capital gains to ₹123 crore from ₹32 crore in the last year period also supported the bottom line.

Also read: ICICI Pru Life Q1 PAT increased by 33% with premium income growth

The combined ratio improved to 103.8 per cent from last year’s 104.1 per cent as the insurer said that excluding the Rs 35 crore hurricane impact, the combined ratio would have been 102.9 per cent for the quarter.

However, the loss rate worsened to 74.1 percent from 72.1 percent last year, largely driven by a jump in the crop loss rate to 102.1 percent from 63.4 percent. The health, travel, fire, marine and engineering sectors also saw worsening loss rates, according to the investor presentation.

Crop insurance accounted for 2.4 percent of the product portfolio as of June 30.

Also read: ICICI Bank raises its stake in ICICI Lombard General Insurance

The underwriting loss widened to ₹319 crore from ₹250 crore in the previous quarter and ₹193 crore in the year-ago period.

ICICI Lombard said it made investments to accelerate growth in health distribution, which helped the retail health agency grow 25.6 percent year-over-year for the quarter.

The solvency ratio was 2.53 times as on June 30, compared to 2.51 times in the previous quarter.