ICICI Lombard General Insurance Ltd Q3 FY24: Strong Growth and Market Leadership in Insurance
ICICI Lombard General Insurance Ltd: Overview
ICICI Lombard General Insurance Ltd is one of India’s leading private sector general insurance companies, offering a wide range of products including motor, health, travel, home, and corporate insurance solutions. With a strong distribution network and a digital-first approach, the company serves retail and corporate customers across the country. ICICI Lombard focuses on delivering innovative and customer-centric insurance solutions, leveraging technology to enhance efficiency and customer experience. It has consistently maintained its leadership position in the general insurance sector, driven by its robust underwriting practices, extensive product portfolio, and strategic partnerships. The general insurance industry in India is poised for significant growth, supported by rising awareness, increasing disposable income, and government initiatives to improve insurance penetration. Segments like health insurance are witnessing strong demand due to heightened health consciousness post-pandemic and the growing need for comprehensive coverage. Additionally, motor insurance continues to expand with the rise in vehicle ownership, while infrastructure development is driving demand for property and liability insurance. The industry is expected to grow at a healthy rate in the coming years, aided by advancements in technology, regulatory support, and innovative product offerings. ICICI Lombard, with its strong brand and digital capabilities, is well-positioned to capitalize on these opportunities and sustain its leadership in the sector.
Business Segments
- Retail Group: This segment focuses on individual customers and includes products such as motor, health, travel, home, and personal accident insurance. The retail group aims to provide tailored insurance solutions to meet the diverse needs of individuals, leveraging both offline and online channels for distribution. With the growing middle class and increasing insurance awareness, this segment is a major contributor to the company’s revenue.
- Corporate Solutions Group: The Corporate Solutions Group offers a range of insurance products designed for businesses and organizations. These include coverage for property, liability, marine, and other business-related risks. It serves large corporations, small and medium enterprises (SMEs), and public sector companies. This segment focuses on providing customized solutions that meet the complex risk management requirements of businesses, supporting their growth and operational stability.
- Government & Rural Business Group: This segment is dedicated to providing insurance solutions to government bodies, public sector undertakings (PSUs), and the rural population. The company offers products like crop insurance, rural health insurance, and government-backed schemes aimed at enhancing financial inclusion and protecting underserved communities. The Government & Rural Business Group plays a vital role in expanding insurance penetration in India, particularly in rural areas.
- Shared Services: ICICI Lombard’s Shared Services segment focuses on providing internal support functions across the company, including IT services, operations, claims management, underwriting, and risk management. This segment ensures the smooth functioning of the company’s day-to-day operations, optimizing processes, reducing costs, and enhancing overall efficiency. Shared services are important to maintaining operational scalability and ensuring customer satisfaction across all business segments.
Subsidiary Information
ICICI Lombard General Insurance Company Limited (ICICI Lombard) doesn’t have any subsidiary companies. However, ICICI Lombard is a subsidiary of ICICI Bank Limited.
Q3 FY24 & Business Highlights
- Revenue of ₹6161 crore in Q3 FY24 up by 18.6% YoY from ₹5194 crore in Q3 FY24.
- EBITDA of ₹962 crore in this quarter at a margin of 16% compared to 11% in Q3 FY24.
- Profit of ₹724 crore in this quarter compared to a ₹431 crore profit in Q3 FY24.
- Solvency ratio was 2.36x as at December 31, 2024 as against 2.65x as at September 30, 2024 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.62x as at March 31, 2024.
- Retail health agency vertical grew by 29.9% for Q3 FY25; group insurance has the highest share pf 52.6% in health insurance revenue.
- Investment portfolio mix for 9M FY25: Corporate bonds 46.2%, G-Sec 37.2% and Equity (including equity ETF) 13.6%. Unrealised gain of ₹ 14.98 billion as on December 31, 2024.
- The average claim settlements are 5 days for Motor OD and 3 days for health insurance.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 5194 | 6161 | 17876 | 20487 |
| Expenses | 4639 | 5199 | 16612 | 17910 |
| EBITDA | 555 | 962 | 1264 | 2577 |
| OPM | 11% | 14% | 7% | 13% |
| Other Income | 19 | -2 | 991 | 112 |
| Net Profit | 431 | 724 | 1729 | 1919 |
| NPM | 8.3% | 11.8% | 9.7% | 9.4% |
| EPS | 8.8 | 14.6 | 35.2 | 38.9 |