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Eagle's Eye View on ICICI Lombard's Q1_fy25 and insights:

Lesson 97/223 | Study Time: 5 Min

Course: Top Quality Companies

### *Company Overview*:

ICICI Lombard is a leading private general insurance company in India, offering a comprehensive range of products including motor, health, crop, fire, personal accident, marine, engineering, and liability insurance. With a legacy of over 20 years, the company has issued over 36.2 million policies and honored over 2.9 million claims. The company focuses on customer-centricity and technological advancements, being the first large-scale insurance company in India to migrate its core systems to the cloud.

### *Industry Overview*:

The non-life insurance industry in India is significantly underpenetrated. India is the 4th largest non-life insurance market in Asia and the 15th largest globally. Non-life insurance penetration in India was around 1/4th of the global average in 2023.

### *Key Financial Highlights (Q1 FY25)*

- **Gross Direct Premium Income (GDPI):** ₹76.88 billion (20.4% YoY growth)

- **Combined Ratio:** 102.3% (Improved from 103.8% in Q1 FY24)

- **Profit Before Tax (PBT):** ₹7.74 billion (48.8% YoY growth)

- **Profit After Tax (PAT):** ₹5.80 billion (48.7% YoY growth)

- **Return on Average Equity (ROAE):** 19.1% (up from 14.7% in Q1 FY24)

- **Solvency Ratio:** 2.56x (higher than the regulatory requirement of 1.50x)

### *Business Performance*:

- **Motor Insurance:** Maintained industry-leading position with a diverse product mix.

- **Health, Travel & Personal Accident:** Investments towards growth in health distribution; launched AI-powered health insurance solutions.

- **Property & Casualty:** Maintained market leadership in marine cargo, liability, and engineering insurance.

### *Peer Comparison*:

ICICI Lombard continues to outperform the industry average in terms of premium growth and profitability. The company's diversified product portfolio and robust risk management practices contribute to its competitive edge. ICICLombard is the leader among Private companies followed by BajajAllianz & HDFCERGO

### *Future Outlook*:

ICICI Lombard aims to continue its growth trajectory through customer-centric innovations, technological advancements, and strategic risk management. The company is also focusing on enhancing penetration in tier 3 and tier 4 cities, expanding its digital offerings, and maintaining a high solvency ratio.

### *Investment Considerations*

Investors should consider ICICI Lombard's consistent financial performance, strong market position, and commitment to technological advancements. The company’s ability to maintain high profitability and a strong solvency ratio, despite market challenges, indicates robust risk management and operational efficiency.

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Piyush Patel

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