ICICI Lombard records 40% rise in Q4 PAT, earns net premium of ₹3,726 cr; declares dividend

ICICI Bank-backed general insurance arm, ICICI Lombard on Tuesday beats estimates in terms of profitability for the fourth quarter of FY23. The company posted a net profit of ₹436.96 crore in Q4FY23, rising by 39.82% compared to a profit of ₹312.51 crore in the same quarter a year ago. However, the company's net premium earned in Q4FY23 witnessed a mixed performance with an upside of over 12% YoY but down by 1.7% sequentially. The general insurer has also declared a dividend.

In December 2022 quarter, the company posted a PAT of ₹352.53 crore.

The company posted premium earned (net) of ₹3,726.03 crore in Q4FY23 compared to ₹3,317.78 crore in Q4FY22 and ₹3,792.05 crore in Q3FY23.

The company's gross direct premium income (GDPI) came in at ₹49.77 billion in Q4 FY2023 as against ₹ 46.66 billion in Q4 FY2022, a growth of 6.7% as against the industry growth of 16.9%.

Further, the company's board has proposed final dividend of ₹ 5.50 per share for FY2023. The payment is subject to the approval of shareholders in the ensuing Annual General Meeting of the Company.for a respective fiscal year. In FY23, the company's overall dividend including proposed final dividend stood at ₹10 per share.

ICICI Lombard's Return on Average Equity (ROAE) was 17.7% in FY2023 as against 14.7% in FY2022, whereas ROAE was 17.2% in Q4 FY2023 as against 14.0% in Q4 FY2022.

Additionally, the company's solvency ratio was 2.51x as at March 31, 2023 as against 2.45x as at December 31, 2022 which was higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.46x as at March 31, 2022.

For full year FY23, the company posted a PAT of ₹1,729 crore up by 36% from ₹1,271 crore in FY22. GDPI stood at ₹21,025 crore in FY23 versus ₹17,977 crore in FY22, registering a growth of 17% YoY --- which was higher than the industry growth of 16.4%.