Sanjiv Mantri, MD &CEO, ICICI Lombard General Insurance.
The insurer’s combined ratio was at 102.5 per cent in Q4 FY2025 as compared to 102.3 per cent in Q4 FY2024. Its underwriting losses have swelled up by 38 per cent year-on-year(Y-o-Y) to Rs 209 crore from Rs 152 crore in the corresponding quarter of the previous fiscal
Mumbai: With higher underwriting losses and lower investment income, ICICI Lombard General Insurance, the country’s second largest general insurer, has seen a slight dip in its net profit to Rs 510 crore in Q4 FY2025 from Rs 519 crore in Q4 FY2024.
The insurer’s board met today and has proposed a final dividend of Rs 7.00 per share for FY2025. The overall dividend for FY2025 including proposed final dividend is Rs 12.50 per share.
The company’s gross premium also grew marginally to Rs 6211 crore in Q4 FY2025 as compared to Rs 6073 crore in Q4 FY2024.
The insurer’s combined ratio was at 102.5 per cent in Q4 FY2025 as compared to 102.3 per cent in Q4 FY2024.
The combined ratio in insurance is a financial metric that assesses an insurer’s profitability by measuring the ratio of claims and operating expenses to earned premiums. A combined ratio below 100 per cent generally indicates underwriting profitability, while a ratio above 100 per cent suggests underwriting losses
Its underwriting losses have swelled up by 38 per cent year-on-year(Y-o-Y) to Rs 209 crore from Rs 152 crore in the corresponding quarter of the previous fiscal.
ICICI Lombard General Insurance has suffered underwriting losses in its portfolios like Motor, Health(both retail and corporate) while remained profitable in portfolios like Fire , Marine and Crop
Incurred claim ratio(ICR) of the company rose to 71.6 per cent in Q4FY 25 from 65.80 per cent in Q4FY 24.
Expenses of Management(EoM) of the company fell to 32.8 per cent in the reporting quarter from 34.7 per cent in Fy 24.
The insurer’s investment income in Q4FY 25 fell to Rs 877 crore as against Rs 954 crore in Q4 FY2024
Solvency ratio of the insurer was at 2.69x as at March 31, 2025 as against 2.36x as at December 31, 2024 and higher than the minimum regulatory requirement of 1.50x.
“As indicated during the last quarter, the government expenditure remained flat which impacted the Commercial lines segment growth for current quarter. However, we have started seeing an uptick in government spending towards capital expenditure in past few months. This may be a positive for the Commercial lines business,” said Sanjiv Mantri, MD &CEO, ICICI Lombard General Insurance.
“In Motor segment, we grew at 0.1 per cent for Q4 FY2025 .In the Commercial lines segment, our growth was at 2.8 per cent in Q4 FY2025. Our retail Health segment registered a growth of 47.7 per cent for Q4 FY2025. The industry growth in FY2025 was impacted due to the 1/n accounting norm and lower growth in the health benefit business, attributable to lower disbursement of credit by NBFCs,” he said.
Effective from October 1, 2024, under the the 1/n accounting norm, as introduced by the IRDAI, general insurers for long-term policies across key segments like Health, Motor, and Property insurance will have to report only one year’s premium at a time.