ICICI Lombard Q1 Net Rises 28% to Rs 747 crore on Higher Capital Gains

Mumbai: ICICI Lombard reported a 28% rise in net profit to Rs 747 crore for the June quarter, driven by higher capital gains and improved returns on equity. Profit after tax rose from Rs 580 crore a year earlier. Profit before tax rose to Rs 994 crore from Rs 774 crore, while capital gains during the quarter climbed to Rs 380 crore from Rs 284 crore.

Gross direct premium income stood at Rs 7735 crore, up 0.6% from Rs 7688 crore. The company attributed the modest growth to changes in accounting rules. The insurance industry, by comparison, posted 8.8% growth. ICICI Lombard’s gross domestic premium grew 4.8%, while the industry grew 12.8%. The company said comparisons with earlier periods are not strictly valid due to an accounting shift.

The combined ratio, a measure of profitability, was 102.9%, slightly higher than the previous year’s 102.3%. Return on average equity improved to 20.5% from 19.1%. The solvency ratio as of June 30 was 2.70x, higher than 2.69x at the end of Mar and well above the regulatory minimum of 1.50x.


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