ICICI Lombard's Financial Triumph in Q1

Mumbai: ICICI Lombard has announced an impressive 28% increase in its net profit, reaching Rs 747 crore for the June quarter. This remarkable growth is attributed to higher capital gains and enhanced returns on equity, marking a significant upturn from the previous year's Rs 580 crore.

Breaking Down the Numbers

Profit before tax saw a rise to Rs 994 crore from Rs 774 crore, with capital gains during the quarter escalating to Rs 380 crore from Rs 284 crore. Despite a modest 0.6% growth in gross direct premium income to Rs 7735 crore, the company points to accounting rule changes as the reason, contrasting with the industry's 8.8% growth.

Profitability and Regulatory Compliance

The combined ratio slightly increased to 102.9% from the previous year's 102.3%. However, the return on average equity improved to 20.5% from 19.1%, and the solvency ratio stood strong at 2.70x, well above the regulatory minimum of 1.50x.