ICICI Lombard –
Q2 FY 25 results and concall highlights –
GDPI @ 6721 vs 6086 cr, up 10.4 pc ( vs an industry growth of 2 pc )
Combined ratio @ 104.5 vs 103.9
PBT @ 919 vs 764 cr
PAT @ 694 vs 577 cr
Breakdown of insurance portfolio in H1 FY 25 vs H1 FY 24 –
Motor Own Damage – 17 vs 16 pc
Motor Third Party – 16 vs 16 pc
Health and Travel – 30 vs 30 pc
Marine – 4 vs 3 pc
Fire – 13 vs 15 pc
Crop 9 vs 8 pc
Others – 11 vs 12 pc
Investment book stands @ 51,557 vs 45,312 cr YoY ( invested in corporate bonds – 43 pc, G-Secs – 40 pc, Equity – 13 pc, Others – 7 pc )
Segment wise loss ratios –
Motor OD – 65.5 vs 65.5 pc
Motor TP – 64.7 vs 66.1 pc
Health, Travel – 83.2 vs 80.6 pc
Crop – 97.1 vs 90.1 pc
Fire – 55.6 vs 71.7 pc
Marine – 85.1 vs 76.5 pc
Engineering – 45.4 vs 90.5 pc
Others – 71.8 vs 67.8 pc
Total – 72.6 vs 72.3 pc
Breakdown of company’s MOTOR Insurance mix –
Private cars – 52.9 pc
Two wheelers – 25.3 pc
CVs – 21.8 pc
Breakdown of company’s HEALTH Insurance mix –
Individual – 17.8 pc
Group – Others – 24.6 pc
Group – Employers -Employee – 57.6 pc
Individual health insurance vertical grew strongly @ 41.4 pc in Q2 – pulling up the growth rate for the combined health insurance segment to 12.3 pc for the company. Company’s retail mkt share in Health insurance now stands at 3.5 pc
Fire segment de-grew by 10.7 pc in Q2
Strong govt spends on infra are ensuring fast growth in segments like – Marine and Engineering insurance segments
In the motor segment, company grew its premiums by 16.2 pc ( despite the slowdown in Auto sales ) – mainly driven by renewal + old vehicle insurance ( @ 26 pc YoY growth ). Growth in new vehicle insurance was largely flat
During the qtr, country witnessed a number of natural calamities like- floods in AP, Telangana, North India, Gujarat – which caused losses to the tune of 94 cr for the company. This adversely impacted the combined ratio in Q2 by 1.9 pc. Q2 and H1 combined ratios stand at 104.5 and 103.2 pc
Investment book stood @ 51,557 cr as on 30 Sep 24
Investment income in Q2 was at 1124 vs 956 cr
Investment leverage stood @ 3.91 vs 4.14 YoY
Company continues to maintain its full year combined ratio guidance of 101.5 pc
Company has been investing heavily in their OEM/Dealership – partnerships + their agency and distribution channels to drive the growth the Motor Insurance segment. The same is getting reflected in numbers – ie good growth in the segment despite flatish growth in the new car sales and new car insurance business
2W sales off-late, have been encouraging. Pickup in CV sales is expected in H2 as govt spending picks up. Plus the Industry has not taken a hike a Third party motor insurance rates. All these factors make the company positive about the future of Motor insurance segment
In the motor insurance segment, company has gained mkt share from 9.7 to 10.9 pc in last one year. That’s a significant jump inside 1 yr. Company has worked really hard on expanding their distribution and working on their customer satisfaction. This is leading to handsome mkt share gains
Disc: studying, not invested, not SEBI registered
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