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📊 ICICI Lombard General Insurance – FY25 & Q4 FY25 Results Update

Lesson 100/158 | Study Time: 20 Min

Course: Quarterly Result Updates & Analysis

📊 ICICI Lombard General Insurance – FY25 & Q4 FY25 Results Update

🔍 Overview

ICICI Lombard, India’s leading private general insurer, demonstrated a resilient performance in FY25, maintaining its trajectory of profitable growth despite a regulatory change in product accounting norms.

📈 Key Performance Metrics

Particulars	Q4 FY25	Q4 FY24	FY25	FY24	YoY Change
Gross Direct Premium Income (GDPI)	₹6,211 Cr	₹6,073 Cr	₹26,833 Cr	₹24,776 Cr	+8.3% (Less then estimated)
Adjusted GDPI Growth (excl. 1/n impact)	8.0%	–	+11.0%	–	Outpacing industry (8.6%)
Investment Income (Net)	₹625 Cr	₹790 Cr	₹3,156 Cr	₹2,860 Cr	+10.3%
Profit Before Tax (PBT)	₹668 Cr	₹698 Cr	₹3,321 Cr	₹2,555 Cr	+30.0%
Profit After Tax (PAT)	₹510 Cr	₹519 Cr	₹2,508 Cr	₹1,919 Cr	+30.7% (Less then Estimated)
Return on Average Equity (ROAE)	14.5%	17.8%	19.1%	17.2%	⬆
Combined Ratio (CoR)	102.5%	102.3%	102.8%	103.3%	Marginally better

💰 Dividend Update

Final Dividend Recommended: ₹7.00/share

Total FY25 Dividend (incl. interim): ₹12.50/share

Dividend Yield at CMP ₹1790: ~0.70%

🛡️ Solvency, Liquidity & Profitability Ratios (as of March 31, 2025)

Metric	FY25	FY24
Solvency Ratio	2.69x	2.62x
Investment Leverage	3.74x	4.09x
Realized Yield	8.42%	7.98%
ROAE	19.1%	17.2%

✅ All ratios are significantly above regulatory thresholds, showcasing robust financial health.

📊 Trend Insights

🔹 Premium Growth

3-Year GDPI CAGR: ~13.1%

Leadership sustained in Motor (10.8% market share) and Health retail (~3.3%)

FY25 Premium Mix: Motor (29%), Health (29%), Fire (12%), Marine (5%), Crop (5%), Others (20%)

🔹 Profit Growth

PAT CAGR (FY08–FY25): 20.7%

Strong reserve management and predictive loss modeling strengthened profitability

🔧 Industry KPIs: General Insurance Sector

KPI	India Average (FY25)	ICICI GI FY25
GDPI Growth	6.2%	8.3% (11.0% adj)
Penetration (Non-life % of GDP)	0.93% (Global Avg: 2.6%)	Underpenetrated market
Claims Ratio (Total)	~71%	70.6%
Digital Penetration (Policy Issuance)	High (99.9% online)	Industry leader

India’s non-life market remains a large underpenetrated opportunity, being just 1/4th the global average.

🧠 Strategic Strengths & Innovations

Digital-First: ILTakeCare app with AI/ML-enabled claims handling

Fast Claim Settlements: 5 days (Motor), 3 days (Health)

High Tech Use: 73.2% cashless authorizations through AI

Strong CAT Protection: Diversified reinsurers and low CAT exposure

📌 Valuation Snapshot @ CMP ₹1,790

Metric	Value
Market Cap	~₹43,000 Cr
EPS (FY25)	₹50.74
PE Ratio	~35.3x (Fair PE is 30)
Book Value per Share	₹288.53
Price-to-Book (P/B) Ratio	~6.2x

🧮 Valuation Insight: Premium valuation (Not fair) justified by:

Consistent leadership

Tech-driven underwriting

Long-term growth trajectory in underpenetrated markets

🔮 Outlook

🔸 Near-Term:

Some quarterly margin pressure due to CAT events and investment volatility

Regulatory accounting shift to 1/n basis may cause base volatility

🔸 Long-Term:

Strong prospects supported by:
- India’s rising insurance awareness
- Government reforms in health & crop segments
- Increasing digital adoption

Management’s prudent reserving, risk diversification, and digital transformation will likely deliver compounding shareholder returns.

🧾 Summary for Investors

✅ ICICI GI FY25 reflects strong execution, prudent risk controls, and healthy growth in profitability despite macro challenges.

With its robust solvency, expanding distribution, and tech-led efficiencies, ICICI Lombard remains a blue-chip in India’s insurance landscape.

📄 Disclaimer:

The information provided is for educational and informational purposes only and should not be construed as investment advice or a recommendation. Investors must do their own research or consult their financial advisor before making any investment decisions.

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Piyush Patel

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