ICICI Lombard, one of India’s leading insurance companies, announced a net profit increase of 12% to ₹390 crore during the quarter ended June 30, 2023. This rise can be attributed to the company’s gross direct premium, which saw a growth of 18.9% to ₹6,387 crore compared to the same period last year. However, the return on average equity (ROAE) was slightly lower at 14.7% in Q1 FY24, a decrease from 15.0% in Q1 FY23.
Furthermore, ICICI Lombard’s solvency ratio improved to 2.513x for the quarter ended June, compared to 2.51x in the March quarter. The solvency ratio represents the company’s ability to meet its long-term obligations.
The company’s combined ratio, a measure of profitability, stood at 103.8% due to the impact of a cyclone. The combined ratio is calculated by adding incurred losses and expenses and dividing them by the premium earned.
Apart from robust financial performance, ICICI Lombard also reported an increase in income from investments, which grew by 27% to ₹622 crore for the quarter. This growth can be attributed to higher profits from the sale of investments.
ICICI Lombard’s shares closed 0.94% lower at ₹1,352 on the Bombay Stock Exchange.
During the quarter, the company received a notice of demand amounting to ₹94 crore (including interest) for the assessment year 2015-16.
To read more about ICICI Lombard’s financial performance, click on the link below.
