ICICI Lombard posts 68% growth in Q3 net profit

20 Jan 2025 , 08:55 AM

The general insurance business announced a 67.9% year on year surge in Q3 net profit at ₹72.40 Crore, as compared to ₹431.5 Crore in the previous corresponding quarter.

The company stated that the jump in profit was mainly on account of a 155% growth in capital gains, which stood at ₹276 Crore in Q3 FY25 against ₹108 Crore in Q3 FY24.

The combined ratio of company witnessed improvement in Q3 FY 25 at 102.7% against 103.6% in previous period.

The company’s return on average equity jumped to 21.5% against 15.3% in the previous period.

The business also reported that gross premium income witnessed a decline of 0.3% on a year and year basis, to ₹6,214 Crore versus ₹6,230 Crore. The company stated that this was mainly due to a shift implemented by IRDAI in October 2024.

The company’s solvency ratio, which measures financial strength, was 2.36x as of December 31, 2024, exceeding the statutory requirement of 1.5x but less than the 2.65x reported in the preceding quarter.

The gross direct premium income (GDPI) increased by 4.8% throughout the quarter, reflecting underlying business resilience. In YTD as of December 31, 2024, GDPI went up by 10.3% YoY to ₹20,623 Crore, exceeding industry growth of 7.8%. Without the 1/n effect, GDPI growth would have been 11.9%.

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