ICICI Lombard General Insurance Company Limited
ICICI Lombard General Insurance Co. Ltd is one of the leading and established private sector general insurance companies in India. It offers a well-diversified range of products and risk management solutions through multiple distribution channels. It was established in 2001 as a JV between ICICI Bank and Fairfax Financial Holdings Ltd. ICICI held 64% stake, and the rest was held by JV partner.
Key Business segments
In FY 2024, ICICI Lombard General Insurance reported total revenue of approximately ₹19,800 crore and a gross direct premium income of ₹24,776 crore, reflecting strong growth across its business lines. Profit after tax rose to ₹1,920 crore, marking an 11% year-on-year increase, while the company improved its combined ratio to 103.3% from 104.5% in the previous year.
Investment Portfolio Mix as of H1 FY25:
- Corporate Bonds: 43%
- G-Sec: 40%
- Equity: 12%
- Other: 5%
Shareholding Pattern
Financial Summary
| Particulars | Mar-23 | Mar-24 | Mar-25 |
| Sales | 17,876 | 20,487 | 23,961 |
| Sales Growth % | 11.54% | 14.61% | 16.95% |
| Expenses | 16,612 | 17,910 | 20,680 |
| Operating Profit | 1,264 | 2,577 | 3,281 |
| OPM % | 7% | 13% | 14% |
| Net Profit | 1,729 | 1,919 | 2,508 |
| EPS in Rs | 35.21 | 38.94 | 50.6 |
Final Outlook
ICICI Lombard delivered a resilient performance in FY2025, reflecting its strong fundamentals and disciplined underwriting approach. Despite some quarterly softness, the company posted a healthy 8.3% growth in Gross Direct Premium Income (GDPI), outpacing the industry growth of 6.2%. When adjusted for the 1/n accounting norm, GDPI rose by 11.0%, showcasing solid momentum across key insurance segments. Health insurance remained a bright spot with robust growth in both retail and group portfolios, while the commercial lines segment was weighed down by weakness in fire insurance. Motor insurance growth was moderate, impacted by sluggish vehicle sales and pricing pressures across the sector.
Profitability remained strong, with PAT rising 30.7% year-on-year to ₹25.08 billion for FY2025. Return on average equity (ROAE) improved to 19.1%, signaling enhanced capital efficiency. While Q4 witnessed a modest 1.9% decline in PAT due to muted capital gains and slightly higher claims, the overall annual trajectory remains positive. Investment income surged to ₹42.50 billion, supported by higher capital gains and an expanded investment base. However, the sharp drop in Q4 capital gains affected the quarterly investment income.
The combined ratio for FY2025 improved marginally to 102.8% from 103.3% in FY2024, highlighting better underwriting performance. Excluding catastrophic losses, the combined ratio was 102.4%, reflecting consistent risk management. The company also proposed a final dividend of ₹7.00 per share, bringing the total dividend payout for the year to ₹12.50, higher than the ₹11.00 declared in FY2024.
In summary, ICICI Lombard remains fundamentally strong, delivering growth ahead of the industry, maintaining underwriting discipline, and enhancing shareholder value through robust earnings and dividends. While quarterly volatility may persist, especially due to capital market-linked investment income, the long-term outlook remains positive. Existing investors can remain confident in the company’s trajectory, while new investors may consider entering on market corrections to benefit from its sustained growth and leadership in the general insurance space.
