ICICI Lombard General Insurance Company Ltd: Q3FY23 Result Update
23-01-2023

ICICI Lombard General Insurance Company Ltd

Market Cap 56,771 Cr

CMP 1156

P/E 35.4

Results	INR Cr	YoY Growth	Comments
Gross Premiums Written	5,599.7	16.9%	Driven by growth in Motor, Health and Property & Causality segment
Operating Profit	276.4	1.3%	Operating expenses increased by 15.8% to 1244.8 Cr
PAT	352.5	11%	Includes a 128 Cr tax provision reversal

Key Highlights –

· Retail Health distribution grew by 24.2%, while retail health agency vertical grew by 40.1%.

· ICICI Lombard saw 15-20% increase pricing in group health insurance segment.

· Commission expenses declined by 14% to 174.4 Cr on yearly basis.

· Claims incurred increased by 15.7% to 2,666.3 Cr. Claims Ratio at 70.3%.

· Combined ratio for 9MFY2023 at 104.6% vs. 111.0% in 9MFY2022. Combined ratio improved by 0.1% to 104.4% on yearly basis.

Management Outlook –

· Management expects health segment to grow at 40% based on investments made to scale.

· Management has made conservative reserve provisions for crop insurance business which came with Bharti AXA.

· Management guided on combined ratio to be at 104% levels in FY2 and is expected to start declining in FY24.

· Management guided on Expense ratio to remain elevated as investments in retail health and digitalization continues. However, with technology migration of Bharti AXA business being completed, synergy benefits to be visible.