India’s ICICI Lombard posts rise in quarterly profit on health, motor insurance boost

India’s ICICI Lombard General Insurance reported a 7% rise in fourth-quarter profit on Wednesday as stronger premiums from its retail health and motor segments cushioned the impact from higher claims payouts.

The insurer’s profit after tax rose to 5.47 billion rupees ($58.55 million) for the three months ended March 31, from 5.10 billion rupees a year earlier.

Analysts expected Indian general insurers to post a strong March quarter, driven by growth in the health and motor segments, which have continued to benefit from the government’s tax cuts in September.

ICICI Lombard’s retail health insurance net premiums income surged 55.6% year-on-year.

Meanwhile, its motor insurance segment - its largest and accounting for nearly half of total premiums-posted a 15% rise in gross direct premiums. Net premiums earned rose 6.24% for the quarter on strong vehicle sales. Auto sales in March alone rose 25% from last year.

India’s ICICI Lombard posts lower quarterly profit as commissions, employee costs rise

The firm, which also offers crop, fire and marine insurance, reported a near 11% rise in total net premiums earned to 57.91 billion rupees, while total claims paid rose 16% year-on-year to 39.25 billion rupees.

The company’s combined ratio of expenses to premiums, a key profitability metric for insurance firms, improved to 101.2% from 102.5% a year ago and 104.5% in the previous quarter.

A lower ratio indicates the insurer is retaining more premium incomes relative toclaims paid and operating expenses incurred.