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

For nine months-FY23, net written premium grew 14%, while the combined ratio stood at 104.6% versus 111%.
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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:

Motilal Oswal ICICI Lombard Q3FY23 Results Update.pdf
Opinion
ICICI Lombard Q3 Results: Profit Rises 11%, Misses Estimates

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