ICICI Lombard Q3 Results: Profit Rises 11%, Misses Estimates

The general insurer's profit rose 11% year-on-year to Rs 352.5 crore in Q3.

<div class="paragraphs"><p>(Source: Unsplash)</p></div>
(Source: Unsplash)

ICICI Lombard General Insurance Co.'s profit rose in the third quarter but missed analysts' estimates.

The general insurer's profit rose 11% year-on-year to Rs 352.5 crore in the quarter ended December, it said in an exchange filing. That compares to the Rs 448.6-crore consensus estimate of analysts tracked by Bloomberg.

The net premium rose to Rs 4,163 crore, a rise of 13.9% over a year earlier.

ICICI Lombard Q3 FY23 Highlights (YoY)

  • Revenue rose 13.18% to Rs 4,362 crore against the estimated Rs 4,378.8 crore.

  • Operating profit was up 1.25% at Rs 276.5 crore.

  • Operating profit in the fire segment grew 6.26%, while profits from the motor segment were up 305% year-on-year. Losses in the health retail segment narrowed 46%, while profits from group and corporate segment declined into loss.

  • Crop insurance reported loss against profit a year ago.

  • Margin stood at 6.34% versus 7.09%.

  • Solvency ratio stood at 24.5 times versus 24.7 times as of September. It was 2.46 times as of March 31, 2022, and is higher than the minimum regulatory requirement of 1.50 times.

  • Combined ratio, calculated by adding incurred losses and expenses and dividing them by the premium earned, stood at 104.4% against 104.5%.

  • Claim ratio was higher at 8.54% versus 2.67% last year.

9-Month Highlights (YoY)

  • The after-tax profit jumped 34.8% to Rs 1,292 crore. Excluding the tax reversal, the growth was 21%.

  • Operating margin was at 8.73% from 6.82%, while the revenue was up 9.9%.

  • Incurred claims ratio stood at 12.52% against 12.07%.

  • Combined ratio stood at 104.6%, compared to 111% over the same period a year ago. The base included the impact of floods and cyclones, and Covid-19 claims on the health book of the company.

  • Return on average equity was 18.1% versus 15.1%.