ICICI Lombard Q4 net jumps 40%

Mumbai: ICICI Lombard General Insurance posted a 40% growth in its fourth-quarter profit after tax at Rs 437 crore. The corresponding figure in the year-ago quarter was Rs 313 crore. The growth was driven by an improvement in the company’s underwriting margins.

Gross direct premium for latest Q4 was Rs 4,977 crore, up 6.7% from Rs 4,666 crore in the corresponding quarter of previous year. ICICI Lombard’s motor business, which accounts for around 60% of the company’s net premium income, rose 9% to Rs 2,102 crore for the latest quarter.

The company’s board has proposed a final dividend of Rs 5.5 per share for FY23, subject to the approval of shareholders. The overall dividend for FY23, including the proposed final dividend, is Rs 10 per share.

The combined ratio, which measures the incurred losses and expenses in relation to total premiums collected, improved to 104.5% from 108.8% a year earlier. Lower the combined ratio of company, the better are its margins.

Announcing the results, ICICI Lombard chief financial officer Gopal Balachandran said the company’s management expenses ratio were well within the 30% ceiling prescribed by the regulator. He said that the new rules on commission not exceeding the management expenses ratio would not impact the company.

Balachandran said that the company’s solvency ratio, a measure of the insurer’s ability to meet its long-term debt obligations, rose to 2.51 from 2.46 in the year-ago period and the company would not require to raise additional capital to meet its growth requirements. The insurance regulator prescribes a solvency ratio of 1.5 times for companies.


Stay informed with the latest Business News on Times of India. Explore updates on International Business, gain insights with Financial Literacy tips, and make use of Financial Calculators. Don’t forget to check the list of Bank Holidays in 2025, including Bank Holidays in January.