(Reuters) – India’s ICICI Lombard General Insurance beat third-quarter profit estimates on Friday, helped by higher premiums earned in its health and motor insurance segments.
The insurer reported profit after tax of 7.24 billion rupees ($83.6 million) for the quarter ended Dec. 31, up 68% on-year. Analysts, on average, expected a profit of 6.10 billion rupees as per data compiled by LSEG.
India’s insurance sector has seen rapid growth in recent years, with a rise in improved awareness following the COVID-19 pandemic and rising medical costs.
The country’s general insurance industry is projected to grow to about $57 billion in 2028 from $40 billion in 2024 in terms of gross written premiums, according to data and analytics firm GlobalData.
ICICI Lombard’s premiums earned in its retail health insurance and corporate health insurance units grew nearly 25% and 12%, respectively.
Motor insurance premiums, ICICI’s largest segment, grew 17% to 25.60 billion rupees.
While sale of new vehicles were muted in the last few quarters, analysts said that ICICI Lombard’s auto segment has seen growth driven by old vehicles’ insurance.
The company did not give a breakdown of premium earned from insurance of new and old vehicles.
The company’s net premiums earned rose 17% to 50.45 billion rupees, while income from investments rose 23%.
Combined ratio, an insurance company’s losses and expenses divided by the premium it earned, eased to 102.7% from 103.6% a year earlier.
A lower ratio indicates the insurer is earning more through premiums in relation to its claims paid and operating expense incurred. ICICI Lombard’s claims paid rose 19% year-on-year.
Shares of the company ended 2.1% higher ahead of the results.
($1 = 86.5720 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Varun H K)
