ICICI Lombard Posts 29% Jump in Q1 Profit to ₹747 Crore; Premiums Rise 14%

16 Jul 2025 , 12:28 PM

ICICI Lombard General Insurance started the new financial year on a strong note, posting a 28.7% rise in net profit for the April to June quarter. The insurer reported a profit of ₹747 crore, up from ₹580 crore in the same period last year.

The growth was supported by higher premium earnings and better investment returns. Net premium earned during the quarter stood at ₹5,136 crore, compared to ₹4,504 crore last year, a year-on-year jump of 14%. Profit before tax also moved higher to ₹994 crore, from ₹774 crore in the year-ago period. Capital gains contributed ₹380 crore this time, up from ₹284 crore last year.

That said, the company’s combined ratio, which reflects its underwriting efficiency, edged up slightly to 102.9%. It had stood at 102.5% in the previous quarter and 102.3% a year earlier.

Gross Direct Premium Income (GDPI) grew modestly to ₹7,735 crore from ₹7,688 crore, a marginal increase of 0.6%. That growth lagged the overall general insurance industry, which expanded by 8.8% during the same period. Adjusting for the 1/n accounting rule, ICICI Lombard’s GDPI growth came in at 4.8%, still behind the industry’s 12.8% growth under the same metric.

Return on average equity saw a slight improvement, rising to 20.5% from 19.1% a year earlier. The solvency ratio stood at 2.70 times, just above the 2.69 times recorded at the end of March. It remains comfortably above the regulatory minimum of 1.50 times. Advance premium rose to ₹3,807 crore as of June 30, up from ₹3,717 crore three months ago.

Retail health was a standout performer. Investments in distribution helped push growth in this segment to 32.2% year-on-year. Market share in retail health rose to 3.5% from 2.9% a year earlier. Meanwhile, growth in the group benefit segment remained muted. The company cited lower credit disbursements and the impact of 1/n accounting adjustments as key reasons.

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