Updated January 16th, 2024 at 21:28 IST
ICICI Lombard records 22% jump in Q3 profit with climbing premiums
ICICI Lombard is a non-life insurer which offers insurance for health, fire, and motor segments.
ICICI Lombard General Insurance has reported a 22.4 per cent rise in profits for the third-quarter on the back of growth in premiums and investment income.
Profit after tax for the private bank’s insurance arm rose to Rs 4.31 billion for the quarter ended December 31, from Rs 3.53 billion in the year-ago period.
Notably, ICICI Lombard is a non-life insurer which offers insurance for health, fire, and motor segments.
In an exchange filing, the ICICI Bank-backed company said motor insurance, which also happens to be the company's biggest segment, contributed 50.8 per cent to the total premium earned.
Health insurance, on the other hand, emerged as its fastest-growing segment which posted 42.4 per cent growth.
The October to December quarter in India reflected bumper vehicle sales since the festive and wedding seasons fall in this period. This has resulted in a rise in policies for general insurers.
The net premium earned during the December quarter was up 13.5 per cent to Rs 43.05 billion.
ICICI Lombard’s income from investments rose nearly 15 per cent to Rs 6.66 billion in the reported quarter.
Their combined ratio, which is an important profitability metric for the underwriting business of an insurance firm, improved to 103.6 per cent from 104.4 per cent a year ago.
Notably, the combined ratio measures the incurred losses and operating expenses as a percentage of the premium collected. It does not take into account income from investments.
Another arm which declared results today was ICICI Securities, which reported a standalone net profit of Rs 465 crore in the December 2023 quarter. The net profit for the company was up 67 percent compared to the year-ago period. The standalone revenue from operations stood at Rs 1,322 crore during the quarter under review, 50 per cent higher than the corresponding period of the previous fiscal.
Notably, the company is in the process of delisting. The company has received no objection letters from the National Stock Exchange of India (NSE) and a letter from Bombay Stock Exchange Limited (BSE) on November 28, 2023, for the same, during the quarter period, which enables the company to file the scheme with National Company Law Tribunal (NCLT).
(With agency inputs)
Published January 16th, 2024 at 21:28 IST