ICICI Lombard General Insurance Company (ICICIGI) Q2 24/25 earnings summary

Executive summary

• Maintained market leadership as India's top private non-life insurer since FY2004, with a 16-year GDPI CAGR of 13.4% and H1 FY25 market share at 9.4%.

• Gross direct premium income (GDPI) grew 15.5% year-over-year in H1 FY25, outpacing industry growth of 7%.

• Profit after tax increased 31.7% year-over-year in H1 FY25 and 20.2% in Q2 FY25.

• Strong focus on technology, customer service, and risk management, leveraging AI/ML and robust reserving practices.

• Interim dividend of ₹5.50 per share declared for FY2025, payable on or before November 16, 2024.

Financial highlights

• H1 FY25 GDPI: INR 144.09 billion vs. INR 124.72 billion in H1 FY24; Q2 FY25 GDPI: INR 67.21 billion vs. INR 60.86 billion in Q2 FY24.

• Gross Written Premium for H1 FY25 rose to ₹148.79 billion from ₹128.94 billion in H1 FY24.

• Profit after tax for Q2 FY25 was ₹69,395 lakhs, up from ₹57,727 lakhs in Q2 FY24.

• Investment income in H1 FY25: INR 22.52 billion, up from INR 18 billion in H1 FY24.

• Return on average equity improved to 20.3% in H1 FY25 from 18% in H1 FY24.

Outlook and guidance

• Combined ratio guidance of 101.5% for FY25 remains unchanged, barring further catastrophic events.

• Continued focus on profitable growth, digital enablement, and expanding penetration in Tier 3/4 cities.

• Investments in AI, ML, and digital platforms to drive operational efficiency and customer experience.

• Emphasis on ESG initiatives, including decarbonization, renewable energy, and green bonds.

• Management notes that quarterly results are not indicative of full-year performance due to industry seasonality.