ICICI Lombard General Insurance Company Ltd - Apr 2025 Earnings Call Transcript Analysis

April 21, 2025 · 4 min read

Earnings Call Transcript Analysis Report #

FY2025: ₹268.33 billion, +8.3% YoY (vs. industry +6.2%). On ’n’ basis: +11.0% YoY.
Q4 FY2025: ₹62.11 billion, +2.3% YoY (vs. industry +1.7%). On ’n’ basis: +8.0% YoY.
Growth excluding Crop and Mass Health (FY2025): +7.7% YoY (vs. industry +8.0%).
Quote (Sanjeev Mantri): “For FY2025, the Company registered a growth of 8.3% as against the industry growth of 6.2%.”

FY2025: 102.8% (vs. 103.3% in FY2024). Excluding CAT losses: 102.4% (vs. 102.5% in FY2024). On ’n’ basis: 102.6% (vs 103.3% in FY24).
Q4 FY2025: 102.5% (vs. 102.3% in Q4 FY2024).
Management highlighted improvement despite worsening industry combined ratio (Industry 9M FY25: 113.2% vs 112.2% 9M FY24; Private Sector 9M FY25: 111.2% vs 108.3% 9M FY24).
Quote (Sanjeev Mantri): “Our continued focus on driving profitable growth, helped us to improve our Combined ratio… from 103.3% in FY2024 to 102.6% in FY2025 on ’n’ basis.”

Profit Before Tax (PBT): FY2025: ₹33.21 billion, +30.0% YoY. Q4 FY2025: ₹6.68 billion, -4.2% YoY.
Profit After Tax (PAT): FY2025: ₹25.08 billion, +30.7% YoY. Q4 FY2025: ₹5.10 billion, -1.9% YoY.
Quote (Gopal Balachandran): “Consequently, Profit after tax (PAT) grew by 30.7% to ₹ 25.08 billion in FY2025 as against ₹ 19.19 billion in FY2024.”

Investment Income: FY2025: ₹42.50 billion (vs. ₹36.10 billion FY2024). Q4 FY2025: ₹8.77 billion (vs. ₹9.54 billion Q4 FY2024).
Capital Gains (net): FY2025: ₹8.02 billion (vs. ₹5.51 billion FY2024). Q4 FY2025: ₹0.06 billion (vs. ₹1.56 billion Q4 FY2024). The Q4 YoY decline in Investment Income was attributed mainly to lower capital gains.
Investment Assets: ₹535.08 billion (as of Mar 31, 2025).
Yield to Maturity (YTM) on portfolio: ~7.55%. Duration: >5.3 years.
Quote (Gopal Balachandran): “Capital gains (net of impairment on investment assets) stood at ₹ 0.06 billion in Q4 FY2025 as compared to ₹ 1.56 billion in Q4 FY2024.”

Proposed final dividend of ₹7.00 per share. Total dividend for FY2025: ₹12.50 per share (vs. ₹11.00 in FY2024).

The 1/n accounting norm effective Oct 1, 2024, impacts comparability of Q4 & FY25 GDPI and Combined Ratio figures with prior periods.

Consolidation of customer-facing digital assets (IL TakeCare App, Website, digital alliances).
Results: 2x unique customer visits, 37% growth in fresh digital transactions.
IL TakeCare App: >14.9 million downloads; Business via app: ₹927.7 million (Q4 FY25), ₹2,653.2 million (FY25).
Digital business grew 15.8%, constituting 6.6% of overall GDP for FY2025.
Quote (Sanjeev Mantri): “Downloads for our one-stop solution, ‘IL TakeCare App’, surpassed 14.9 million.”

Motor: Preferred Partner Network (PPN) serviced 73.2% of non-OEM claims in FY25 (up from 65.0%). Cloud calling usage at 86.0% in FY25 (up from 49.0%), reducing calls-to-claims ratio by 21.0%.
Reduced Claim Settlement Time: Motor OD (6 days to 5 days YoY), Health (5 days to 3 days YoY).
IL Sahayak initiative: On-ground claim support to >90,000 customers across 56 cities/2,500+ hospitals in FY25.
NPS: Health claims 67, Motor claims 69 (for 9M FY25).
Quote (Sanjeev Mantri): “Our average claim settlement period for Retail lines of business has seen improvement… from 5 days in FY2024 to 3 days in FY2025 for Health.”

Agent network (incl. POS) at 140,736 as of Mar 31, 2025 (slight increase QoQ). Continued focus on multi-channel distribution.

Driving profitable growth, prudent risk selection (esp. Motor), focus on Retail Health growth.

GDPI +1.7% (Q4 FY25), +6.2% (FY25). Ex-Crop/Mass Health: +4.9% (Q4 FY25), +8.0% (FY25).

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