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• Gross Direct Premium Income (GDPI) H1 FY25: INR144.09 billion, a growth of 15.5% compared to H1 FY24.

• GDPI Q2 FY25: INR67.21 billion, a growth of 10.4% compared to Q2 FY24.

• Motor Segment GDPI Q2 FY25: INR24.82 billion, a growth of 16.1% compared to Q2 FY24.

• Health Segment GDPI Q2 FY25: INR15.29 billion, a growth of 12.3% compared to Q2 FY24.

• Commercial Lines Segment GDPI Q2 FY25: INR14.93 billion, a growth of 1.2% compared to Q2 FY24.

• Combined Ratio Q2 FY25: 104.5%, compared to 103.9% in Q2 FY24.

• Investment Income Q2 FY25: INR11.24 billion, compared to INR9.56 billion in Q2 FY24.

• Profit Before Tax (PBT) Q2 FY25: INR9.19 billion, a growth of 20.3% compared to Q2 FY24.

• Profit After Tax (PAT) Q2 FY25: INR6.94 billion, a growth of 20.2% compared to Q2 FY24.

• Return on Average Equity Q2 FY25: 21.8%, compared to 21.1% in Q2 FY24.

• Solvency Ratio as of September 30, 2024: 2.65 times, higher than the regulatory requirement of 1.5 times.

• Interim Dividend H1 FY25: INR5.5 per share, compared to INR5 per share in H1 FY24.

Release Date: October 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ICICI Lombard General Insurance Co Ltd (NSE:ICICIGI) reported a GDPI growth of 10.4% in Q2 FY25, significantly outperforming the industry growth of 2%.

• The company's motor segment registered a robust growth of 16.1% in Q2 FY25, compared to the industry growth of 6.2%, maintaining its market share leadership.

• The health segment grew by 12.3% in Q2 FY25, driven by a 41.4% growth in the retail health segment, surpassing the industry growth of 17.7%.

• Investment income increased to INR 22.52 billion in H1 FY25 from INR 18 billion in H1 FY24, reflecting strong investment performance.

• Profit after tax grew by 31.7% to INR 12.74 billion in H1 FY25, demonstrating strong financial performance and profitability.

Negative Points

• The commercial lines segment experienced a modest growth of 1.2% in Q2 FY25, lagging behind the industry growth of 2%.

• The combined ratio increased to 104.5% in Q2 FY25 from 103.9% in Q2 FY24, impacted by catastrophic losses.

• Banca business declined by 2.6% in Q2 FY25 due to lower credit disbursement growth from key partners.

• The group health employer-employee segment showed only a 1% growth in Q2 FY25, a significant drop from 34.6% in Q1 FY25, due to increased competitive intensity.

• The motor industry's combined ratio worsened from 121% to 125.6%, indicating increased loss ratios and expense pressures.

Q & A Highlights

Q: The net commission rate for the quarter seems elevated compared to last year. Is this due to higher sales in the retail segment or a change in commission structure? Also, will the combined ratio guidance of 101.5% for Q4 '25 hold despite catastrophic losses? A: The net commission ratio is influenced by the business mix, with growth in profitable segments like motor and retail health. We remain committed to managing expenses within a 30% limit. Despite the impact of catastrophic events, we maintain our guidance for the combined ratio, monitoring industry trends closely.