ICICI Lombard Q3 Results: Profit Rises 22%, But Misses Estimates
The net premium earned for the quarter was up 14% at Rs 4,305 crore.
ICICI Lombard General Insurance Co.'s third quarter profit rose, but fell short of analysts' estimates.
The general insurer's profit increased 22% year-on-year to Rs 431 crore over the quarter ended December, it said in an exchange filing on Tuesday. That compares with the Rs 498 crore consensus estimate of analysts tracked by Bloomberg. Sequentially, it fell 25%.
The net premium earned for the quarter was up 14% at Rs 4,305 crore.
ICICI Lombard Q3 FY24 Key Highlights (YoY)
Revenue rose 15% to Rs 5,003 crore.
Operating profit increased 50% to Rs 416 crore.
The margin stood at 8.31% versus 6.34%.
Operating profit in the fire segment fell 19%, while profit from the motor segment was up 116%. Health retail segment reported a profit of around Rs 2 crore as against a loss last year, while the group and corporate segment's loss narrowed by 21% to Rs 11 crore.
Crop insurance reported a profit of Rs 1 crore, against a loss of around Rs 14 crore a year ago.
The combined ratio, calculated by adding incurred loss and expenses and dividing them by the premium earned, improved to 103.6% from 104.4% in Q3 last year. Excluding the impact of CAT losses, the ratio was 102.3% for Q3 FY24, the company said in the filing.
The expense of management on a gross premium basis stood at 31.2%, unchanged from last year.
Claim ratio was 70% versus 70.3%.
The solvency ratio stood at 2.57 times versus 2.45 times, as of December last year. This is higher than the minimum regulatory requirement of 1.50 times.
The return on average equity increased to 15.3%, as compared with 14.3% last year.
Shares of ICICI Lombard closed 0.18% higher at Rs 1,374.65 apiece on the BSE, as compared with a 0.27% decline in the benchmark Sensex on Tuesday. The results were announced after market hours.