ICICI Lombard General Insurance on Friday posted a 68% year-on-year increase in its third-quarter net profit at ₹724 crore. The company’s net profit for the same quarter previous year stood at ₹431 crore.
The private sector general insurer, however, said the results of the two periods are not comparable since long-term insurance products are accounted for on a 1/n basis, as mandated by Irdai. With effect from October 1, 2024, the insurance regulator has mandated insurers to record only one-year premiums annually even for long-term policies. Excluding the 1/n policy impact, ICICI Lombard’s net profit stood at ₹678 crore for the October-December quarter.
Net premium income (net of reinsurance) grew by 8% year-on-year to ₹5,084 crore while total expenses (including claims and commission payouts) went up by 13% to ₹5,197 crore. The combined ratio of the insurer improved to 102.7% in Q3FY25 from 103.6% in Q3FY24. Gross Direct Premium Income of the insurer for 9MFY25 stood at ₹20,623 crore. Of this, motor insurance accounted for 39% followed by health (28%), fire (12%) and other insurances like marine and crop accounted for the remaining. Shares of ICICI Lombard closed 2.47% higher on the NSE at ₹1,955.