Business · India Bureau
ICICI Lombard posts 15.5% profit growth despite underwriting headwinds
ICICI Lombard General Insurance reported a 15.5 per cent year-on-year increase in net profit to ₹946.4 crore for the second quarter of FY27, driven by premium and investment income gains. However, the insurer's combined ratio deteriorated to 107 per cent as underwriting losses widened.
LSN India ·
The general insurance company's stronger profitability was underpinned by robust growth in premium collections and improved returns from its investment portfolio during the quarter ended September 30, 2024.
Despite the overall profit growth, ICICI Lombard grappled with operational challenges. The combined ratio—a key metric measuring underwriting performance—climbed to 107 per cent, indicating claims and expenses exceeded premium income by 7 per cent. A ratio below 100 per cent typically signals profitable underwriting, while figures above this threshold denote underwriting losses.
The widening of underwriting losses reflects mounting claims payouts and operational costs across the insurer's portfolio. This headwind partially offset gains from higher premium inflows and improved investment returns during the quarter.
ICICI Lombard's results demonstrate the dual pressures facing general insurers in India, where competitive premium pricing and rising claims frequency continue to squeeze margins despite strong top-line growth.