Capitaline

Results 18-Apr-24

Analysis

ICICI Lombard General Insurance Company

Healthy growth with improved combined ratio

ICICI Lombard General Insurance Company has posted 19% jump in the net profit to Rs 519.50 crore in the quarter ended March 2024 (Q4FY2024). PBT grew by 22% to Rs 697.79 crore in Q4FY2024 as against Rs 572.51 crore in Q4FY2023.

Gross Direct Premium Income (GDPI) of the Company was at Rs 6073 crore in Q4FY2024 as against Rs 4977 crore in Q4FY2023, growth of 22%. This growth was higher than industry growth of 9.5%. Excluding crop and mass health, GDPI growth of the Company was at 22%, which was higher than the industry growth of 13.8% in Q4FY2024.

The operating profit of the company declined -56% to Rs 561.55 crore in Q4FY2024, driven by motor segment registering -68% dip on high base to Rs 254.51 crore. The operating profit of marine segment fell -26% to Rs 21.65 crore and miscellaneous segment declined -21% to Rs 59.79 crore. The fire segment posted 7% growth to Rs 193.17 crore.

Combined ratio stood at 102.20% in Q4FY2024 as against 104.20% in Q4FY2023. Incurred claim ratio stood at 68.60% in Q4FY2024 as against 74.20% in Q4FY2023.

The investment portfolio of the company increased 13% to Rs 48907.24 crore, of which the corporate bonds book stood at 41.3%, g-sec 42.0% and equity 11.4% end March 2024..

ROAE was 17.80% in Q4FY2024 compared to 17.20% in Q4FY2023.

Solvency ratio was 2.62x end March 2024 as against 2.57x end December 2023 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.51x end March 2023.

Book value of the company stood at Rs 242.74 per share end March 2024. Book value including fair value change account (shareholders funds) stood at Rs 247.71 per share end March 2024.

Financial Performance FY2024

GDPI of the Company stood at Rs 24776 crore in FY2024 compared to Rs 21025 crore in FY2023, a growth of 18%, which was higher than the industry growth of 12.8%. Excluding crop and mass health, GDPI growth of the Company was at 17.1%, which was higher than the industry growth of 14.8% in FY2024.

Combined ratio stood at 103.30% for FY2024 compared to 104.50% for FY2023. Excluding the impact of CAT losses of Rs 137 crore, the combined ratio was 102.5% in FY2024.

Capital gains were at Rs 551 crore in FY2024 compared to Rs 453 crore in FY2023. Capital gains were at Rs 156 crore in Q4FY2024 as against Rs 159 crore in Q4FY2023.

Profit before tax (PBT) grew by 21% to Rs 2555.18 crore in FY2024 as against Rs 2112.53 crore in FY2023.

Consequently, Profit after tax (PAT) grew by 11% to Rs 1918.59 crore in FY2024 as against Rs 1729.05 crore in FY2023. Excluding impact of reversal of tax provision in Q2FY2023, PAT grew by 19.8% in FY2024.

Return on Average Equity (ROAE) was 17.20% in FY2024 compared to 17.70% in FY2023.

ICICI Lombard General Insurance Company: Results Statement of Revenue Accounts
	2403 (3)	2303 (3)	Var %	2403 (12)	2303 (12)	Var %
1. Premiums earned (net)	4368.25	3726.03	17	16866.47	14822.85	14
2. Profit / Loss on sale/ redemption of investments	765.55	615.78	24	2776.06	2321.21	20
3. Others -	27.93	913.77	-97	109.58	950.84	-88
4. Interest, Dividend & Rent Gross	0.00	0.00	-	0.00	0.00	-
Total (A)	5161.73	5255.58	-2	19752.11	18094.90	9

1. Claims Incurred (net)	2998.71	2766.17	8	11939.47	10725.65	11
2. Commission (net)	949.87	91.36	940	3089.01	472.21	554
3. Operating expenses related to insurance business	651.60	1119.28	-42	2817.73	4514.78	-38
4. Premium deficiency	0.00	0.00	-	0.00	0.00	-
Total Expenses (B)	4600.18	3976.81	16	17846.21	15712.64	14

Operating Profit/ Loss C=(A -B)	561.55	1278.77	-56	1905.90	2382.26	-20
APPROPRIATIONS
Transfer to P&L Account	561.55	1278.77	-56	1905.90	2382.26	-20
Transfer to Other Reserves	0.00	0.00	-	0.00	0.00	-

ICICI Lombard General Insurance Company: Results Statement of Profit & Loss Account
	2403 (3)	2303 (3)	Var %	2403 (12)	2303 (12)	Var %
1. Operating profit/(loss)	561.55	1278.77	-56	1905.90	2382.26	-20
(a) Fire Insurance	193.17	180.67	7	503.67	596.10	-16
(b) Marine Insurance	21.65	29.15	-26	27.21	22.92	19
(c) Health	12.71	127.28	-90	-113.99	60.98	PL
(d) Crop	19.72	63.59	-69	30.03	57.35	-48
(e) Motor	254.51	802.21	-68	1304.43	1419.01	-8
(f) Miscellaneous Insurance	59.79	75.87	-21	154.55	225.90	-32

2. Income from investments	233.25	176.91	32	844.84	731.73	15
3. Other income	0.48	14.08	-97	5.17	43.94	-88
Total Income (A)	795.28	1469.76	-46	2755.91	3157.93	-13

4. Provisions (Other than taxation)	79.99	-8.93	PL	139.94	83.84	67
5. Other expenses	17.50	906.18	-98	60.79	961.56	-94

Total Expenses (B)	97.49	897.25	-89	200.73	1045.40	-81

Profit before tax (A-B)	697.79	572.51	22	2555.18	2112.53	21
Provision for taxation	178.29	135.55	32	636.59	383.48	66
Profit after tax	519.50	436.96	19	1918.59	1729.05	11
EPS (Rs) *	42.2	35.5		38.9	35.1
* on current equity of Rs 492.69 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to Profit, Figures in crore Source: Capitaline Corporate Database

Previous News

ICICI Lombard MD& CEO Bhargav Dasgupta resigns
( Hot Pursuit - 22-Sep-23 11:15 )

Board of ICICI Lombard General Insurance Co. recommends Final Dividend
( Corporate News - 22-Apr-22 11:57 )

ICICI Lombard General Insurance Company standalone net profit declines 9.60% in the March 2022 quarter
( Results - Announcements 22-Apr-22 08:26 )

ICICI Lombard General Insurance Company fixes record date for final dividend
( Market Beat - Reports 14-Jul-22 09:08 )

ICICI Lombard slumps after Q4 PAT drops 10% YoY
( Hot Pursuit - 22-Apr-22 10:27 )

ICICI Lombard General Insurance Co. to table results
( Corporate News - 28-Dec-22 16:43 )

ICICI Lombard General Insurance Company allots 64,110 equity shares under ESOS
( Corporate News - 28-Apr-22 18:41 )

ICICI Lombard slips after Q1 PAT drops 62% YoY
( Hot Pursuit - 23-Jul-21 13:18 )

ICICI Lombard General Insurance Company fixes record date for interim dividend
( Market Beat - Reports 12-Oct-21 09:03 )

ICICI Lombard General Insurance Company standalone net profit rises 28.50% in the June 2020 quarter
( Results - Announcements 17-Jul-20 17:57 )

ICICI Lombard gains after ICICI Bank gets RBI nod to raise shareholding
( Hot Pursuit - 07-Aug-23 09:28 )