ICICI Lombard profits fall 46% to ₹403cr despite premium growth
ICICI Lombard's profits dropped 46% this quarter, landing at ₹403 crore versus ₹747 crore last year.
The main reasons? Two major fire insurance payouts and a Supreme Court decision that increased costs for motor insurance.
Still, the company grew its net premiums by nearly 16%, reaching ₹5,950 crore.
CFO Balachandran cites combined ratio 102.3%
CFO Gopal Balachandran shared that, aside from these unusual hits, their core business stayed steady with a combined ratio of 102.3%.
The Supreme Court's move could push up industry-wide losses in motor insurance by up to 15%, costing ICICI Lombard ₹165 crore this quarter alone.
Even so, the team says they're sticking to smart underwriting and aiming for long-term returns of 18% to 20%.
Growth is still strong in key areas like motor and health insurance, proof that they're not letting these bumps slow them down.