Result Analysis: ICICI Lombard General Insurance Company Ltd. (CMP: Rs. 1250) Result Update: Q3FY23

ICICI Lombard General Insurance Company Ltd. (ILGI) is 4th largest general insurance companies in Asia and 14th largest company globally in 2021. The company is leading private sector non-life insurer in India with 8.6% market share as on 31st December, 2022. It offers a well-diversified range of products which includes Motor, Health, Fire, Marine, Crop & other insurance products. The company’s key distribution channels are direct sales, individual sales, corporate agents, brokers and digital channel.

    Open FREE* Demat & Trading Account & ₹0 AMC for first year

    Stock Details
    Market Cap. (Cr.) 61395
    Equity (Cr.) 491
    Face Value 10
    52 Wk. high/low 1471/1071
    BSE Code 540716
    Book Value (Rs) 202.53
    Sector Insurance


    Key Ratios
    Debt-equity: 0.04
    ROCE (%): 18.62
    ROE (%): 15.36
    TTM EPS: 31.96
    P/BV: 6.2
    TTM P/E: 39.12

    Result Highlights:

    • ICICI Lombard reported degrowth of ~1.2% QoQ in the net premium earned driven by lower premium income in the fire and crop segments.

    • Company’s Net Profit has lowered by 40% QoQ to Rs.352.5 cr. mainly because of the increased operating expense.

    • Motor insurance segment which accounted 56.5% of the net premium earned, has shown sluggish performance in the quarter, net premium earned through the segment has grown marginally by 1.4% QoQ and 10.3% YoY. Private cars GDPI has de-grew in the quarter compared to marginal increase in the Two-wheeler and Commercial vehicle segment.

    • Fire and Crop segments de-grew in the quarter by 1.57% and 75% QoQ and 8.9% and 32% YoY respectively.

    • The Health segment displayed relatively positive performance, Overall health segment has grown by 5.2% QoQ and 31.8% YoY.

    • Solvency ratio of the company is at 2.45x in the December quarter’22 compared to 2.47x of September quarter’22, which is higher than the minimum regulatory requirement of 1.5x.

    • Gross Direct Premium Income of the company is growing consistently and has grown to Rs.5,493 cr. by 16.9% YoY in the December’22 quarter.

    • Claim ratio of the company has decreased sequentially by 250 bps and increased 70 bps YoY.

    Financial Performance:


    Shareholding Pattern:

    Particulars %
    Promoters & Promoter Group 48.02
    FIIs 24.61
    DIIs 16.02
    Public 6.74
    Others 4.61

       Management Commentary:

    Commenting on the December quarter performance, Bhargav Dasgupta, MD & CEO of the company said, The Company grew by 16.9% as compared to the industry growth of 18.1%. Excluding crop, the Company grew by 17.1%. We remain on track and are focused on growth levers such as innovation, digital advancements, launching new products, strengthening our distribution engine, rationalizing cost while scaling up our preferred lines of business.



    ICICI Lombard has shown subdued growth in the December quarter’22 and missed the broader estimates with de-growth of 40% in Net profit and 1.16% in the Net premium earned on QoQ basis. The expense ratio of the company has increased in the quarter by 330bps vs previous quarter while the total loss ratio in the overall segments has improved by 250bps QoQ. The company remains key player in the non-life insurance industry in the country and has large underpenetrated market compared to the global average. ICICI Lombard has delivered the earnings of Rs.26.31 in the last nine months and we expect it to close the FY23 at the EPS of Rs.35.08. Based on the expected earnings the estimated PE of the company terms to be at 35.63x on the CMP.



    Particulars (In Cr.) Q3FY23 Q2FY23 Q3FY22 QoQ % YoY%
    Net Premium Earned 3792.05 3836.55 3311.88 -1.16% 14.50%
    Other Operating Income 766.93 832.23 695.05 -7.85% 10.34%
    Other Income 11.13 35.73 12.2 -68.85% -8.77%
    Total Income 4570.11 4704.51 4019.13 -2.86% 13.71%
    Total Operating Expenditure 4103.99 4005.89 3598.33 2.45% 14.05%
    Operating Profit 466.12 698.62 420.8 -33.28% 10.77%
    Provisions & Write Offs 0.86 88.95 -0.14 -99.03% -714.29%
    Profit Before Tax 465.26 609.67 420.94 -23.69% 10.53%
    Tax 112.73 19.14 103.41 488.98% 9.01%
    Profit After Tax 352.53 590.53 317.53 -40.30% 11.02%


    Segments Premium Income (In Cr.) Q3FY23 Income% Q2FY23 Q3FY22 QoQ% YoY%
    Fire 168.12 4.43% 170.8 184.56 -1.57% -8.91%
    Marine 109.20 2.88% 105.72 95.97 3.29% 13.79%
    Health including Personal Accident 1122.94 29.61% 1,067.43 851.86 5.20% 31.82%
    Motor 2142.81 56.51% 2,113.26 1,942.19 1.40% 10.33%
    Miscellaneous 204.29 5.39% 199.87 171.44 2.21% 19.16%
    Crop Insurance 44.70 1.18% 179.47 65.86 -75.09% -32.13%
    Total 3792.06 100.00% 3,836.55 3,311.88 -1.16% 14.50%


    Ratios (%) Q3FY23 Q2FY23 Q3FY22 QoQ % YoY%
    Combined Ratio 104.4 105.1 104.5 -70 bps -10 bps
    Expense Ratio 31.2 27.9 31.5 330 bps -30 bps
    Solvency Ratio 245 247 245 -200 bps
    Incurred Claim Ratio 70.3 72.8 69.6 -250 bps 70 bps
    Retention Ratio 74.3 69.9 76.4 440 bps -210 bps
    Source: Company website, EWL Research

    Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

    Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
    For analyst certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
    Disclosure Appendix
    Analyst Certification (For Reports)
    Israil Khan, Elite Wealth Limited,
    The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
    As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
    (1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
    (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
    For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
    Research Excerpts
    This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit
    Company-Specific Disclosures
    Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting, or emailing with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail
    Options related research:
    If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at
    Other Disclosures
    All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
    Ownership and material conflicts of interest Disclosure
    Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
    Country Specific Disclosures
    India – For private circulation only, not for sale.
    Legal Entities Disclosures
    Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website:
    EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
    1. Reports
    a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
    (b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
    (c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
    2. Compensation
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
    (c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
    3 In respect of Public Appearances
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL