ICICI Lombard Q3 Results Review - Weak Premium Growth, Low Investment Income Drag Profit Growth: Motilal Oswal

Motilal Oswal Report

ICICI Lombard General Insurance Company Ltd.'s underwriting loss was at Rs 2.9 billion in Q3 FY23 compared to a loss of Rs 1.5 billion in Q2 FY23 versus our estimates of Rs 2.4 billion, owing to low premium and investment income.

Claims ratio declined to 70.3% from 72.8% in Q2 FY23 as loss ratio in Motor own damage, Motor third party, and health segment was lower. Claims ratio increased 70 bps on a YoY basis.

Policyholders’ investment income stood at Rs 5.8 billion, lower than our expectation of Rs 6.5 billion, owing to weaker-than-expected yields.

The combined ratio stood at 104.4% versus 104.5%/105.1% in Q3 FY22/ Q2 FY23. The solvency ratio stood was flat at 2.5 times.

ICICI Lombard's profit after tax for the quarter stood at Rs 3.5 billion versus our estimate of Rs 4.5 billion, a growth of 11% YoY.

For nine months-FY23, net written premium grew 14%, while the combined ratio stood at 104.6% versus 111%. Profit after tax growth over the period was 3% YoY.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.