BENGALURU – India’s ICICI Lombard General Insurance reported a nearly 49% jump in first-quarter profit on Friday, helped by an increase in premiums in its motor and health insurance segments.
Profit after tax rose to 5.80 billion rupees ($69.4 million) for the quarter ended June 30 from 3.90 billion rupees a year earlier, the company said in an exchange filing.
General insurance, especially the motor and health segments, has seen rapid growth in the country in recent years with a rise in vehicle sales and improved awareness following the Covid-19 pandemic and resultant medical costs.
India’s car sales have hit back-to-back records in the last two years, according to data from industry body the Society of Indian Automobile Manufacturers.
The country’s general insurance industry is projected to grow to about $57 billion in 2028 from $40 billion in 2024 in terms of gross written premiums, according to GlobalData a data and analytics firm.
Motor insurance, which accounts for half of ICICI Lombard’s business, grew around 12%, while premiums from its retail health insurance and corporate health insurance units grew about 19% and 24%, respectively.
ICICI Lombard, backed by private lender ICICI Bank, also offers marine and crop insurance among others.
The company’s net premiums earned rose nearly 16% to 45.04 billion rupees in the quarter, and claims rose around 23%.
Combined ratio, a key profitability metric for an insurance firm’s underwriting business, improved to 102.3% from 103.8% a year earlier. A lower ratio indicates the insurer is earning more through premiums in relation to its claims paid and operating expense incurred.
Shares of the company ended 1.5% ahead of the results.
($1 = 83.6480 Indian rupees)
(Reporting by Nishit Navin; Editing by Janane Venkatraman)
