ICICI Lombard profit rises 15.5%
India's ICICI Lombard Insurance Company reported a 15.5% increase in its second-quarter profits for the fiscal year, supported by higher sales of automobile and individual health insurance. The company posted a net profit of 9.46 billion Indian Rupees (approximately $99.42 million) for the period from July to September, compared to 8.2 billion Rupees in the same period last year. Premiums earned rose by 17.7% to reach 66.52 billion Rupees. The growth in the non-life insurance sector was driven by continued demand for cars, aided by tax cuts, as well as rising healthcare costs, with premiums for individual and corporate health insurance increasing significantly by 49.5% and 47.5% respectively. However, the loss and expense ratio to premiums increased to 107%, reflecting a decline in underwriting efficiency and the impact of costs on core profitability. Despite the profit increase, the company's stock has fallen approximately 13% since the beginning of the year, as investors continue to monitor profitability levels and underwriting quality.
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