ICICI Lombard July-September Profit up 18%; Declares ₹6.50 Dividend

ICICI Lombard General Insurance Co. Ltd. reported an 18% on-year rise in net profit to ₹8.20 billion for the September quarter, supported by higher premium income, increased investment returns, and a reversal of provisions for investment value loss. Sequentially, profit rose nearly 10%.

Total income grew 13% on year to ₹65.83 billion, led by a 12% rise in net premium earned to ₹56.52 billion. On a sequential basis, premium income increased 10%. Investment income also contributed to the profit growth, with operating investment income up 6% on year at ₹8.99 billion, while non-operating investment income jumped 16% to ₹3.19 billion.

The company reported a reversal of ₹318 million in provisions for diminution in investment value, aided by the sale of underlying securities. Total expenses rose 12% on year and 7% on quarter to ₹58.30 billion, including ₹32.78 billion in claims paid (up 5%) and ₹10.13 billion in commissions (up 20%).

ICICI Lombard’s solvency ratio improved to 2.73 times as of Sept 30, compared with 2.70 times a quarter ago and 2.65 times a year earlier—well above the regulatory minimum of 1.50 times. The incurred claim ratio stood at 72.1%, down from 73.0% in the previous quarter but higher than 71.4% a year ago. The combined ratio rose to 105.1% from 102.9% in the previous quarter.

For April–September, the insurer’s net profit rose 23% on year to ₹15.67 billion, while total operating income increased 13% to ₹126.66 billion. Gross direct premium income for the first half declined 0.5% on year to ₹143.31 billion against industry growth of 7.3%. Adjusted for the new accounting regulation effective October 1 last year, gross direct premium income grew 4.2%, compared with industry growth of 11.3%.

The board declared an interim dividend of ₹6.50 per share, with October 23 as the record date.