ICICI Lombard General Insurance has reported a strong performance in its Q2 FY2025 results, with net profit rising by 20.2% to ₹694 crore, a significant improvement from ₹577 crore in the corresponding quarter of the previous fiscal year. The company’s growth was driven by a notable increase in Gross Direct Premium Income (GDPI), outperforming the industry average.

Financial Highlights

• Net Profit: ICICI Lombard recorded a 20.2% increase in net profit, reaching ₹694 crore in Q2 FY25.
• Gross Direct Premium Income (GDPI): The company’s GDPI rose by 10.4%, totaling ₹6,721 crore in Q2, compared to the industry’s modest growth of 2.0%.
• Half-Yearly GDPI: For H1 FY25, the GDPI increased by 15.5%, reaching ₹14,409 crore over ₹12,472 crore in H1 FY24. When excluding crop and mass health segments, the GDPI grew by 15.0%, significantly outperforming the industry’s 10.9% growth.
• Combined Ratio: The combined ratio for Q2 FY25 was 104.5%, slightly higher than 103.9% in Q2 FY24. However, excluding catastrophic losses of ₹94 crore, the ratio improved to 102.6% from 102.8%.
• Profit Before Tax (PBT): PBT for Q2 FY25 rose by 20.3%, reaching ₹919 crore compared to ₹764 crore in Q2 FY24. For H1 FY25, PBT surged by 31.9% to ₹1,693 crore, up from ₹1,284 crore in the same period last year.
• Capital Gains: ICICI Lombard saw capital gains rise to ₹237 crore in Q2 FY25, up from ₹165 crore in Q2 FY24, while H1 FY25 capital gains were ₹521 crore, a significant increase from ₹287 crore in H1 FY24.

Dividend Declaration

Given the strong financial performance, the Board of Directors has declared an interim dividend of ₹5.50 per share for H1 FY25, representing 55% of the face value of ₹10 per share. This is an increase from ₹5.00 per share in the previous year’s corresponding period.

Return on Average Equity (ROAE)

ICICI Lombard reported an improvement in ROAE to 21.8% in Q2 FY25, compared to 21.1% in Q2 FY24. For H1 FY25, the ROAE stood at 20.3%, up from 18.0% in H1 FY24, showcasing the company's enhanced profitability.

Strong Solvency Position

The company’s solvency ratio, a key indicator of financial strength, improved to 2.65x as of September 30, 2024, compared to 2.56x in June 2024. This figure remains well above the regulatory minimum of 1.50x, underscoring ICICI Lombard's robust balance sheet and financial health.

Key Takeaways:

• ICICI Lombard posted a 20.2% jump in net profit for Q2 FY25.
• The company saw a 10.4% rise in GDPI, significantly outperforming the industry’s 2% growth.
• The Board declared an interim dividend of ₹5.50 per share for H1 FY25.
• The solvency ratio improved to 2.65x, well above the regulatory requirement.

With robust financials and strong profitability metrics, ICICI Lombard continues to reinforce its position as one of the leading general insurance companies in India.