ICICI Lombard Q4 FY25 PAT slips 2%, FY25 up 31%

Key takeaway

ICICI Lombard General Insurance reported a marginal decline in March-quarter profit, but FY25 numbers showed strong growth in profit after tax, premium income and underwriting metrics. The board also proposed a final dividend of ₹7 per share, taking the total FY25 dividend to ₹12.5.

What the company reported for Q4 FY25

For the quarter ended March 2025 (Q4 FY2025), ICICI Lombard’s net profit came in at ₹509.6 crore, a 1.9% year-on-year decline compared with ₹520 crore in the corresponding quarter.

Premium momentum remained positive in the quarter. The company reported gross premium income of ₹6,930.9 crore, up 10.2% year-on-year. Separately, the company disclosed that gross premium income for Q4 rose 10.2% year-on-year to ₹6,903.9 crore, indicating a slightly different reported number across sources.

Profitability within the quarter showed pressure on underwriting. The company’s operating profit fell 25.9% to ₹415.9 crore, a decline attributed in the provided data to underwriting pressures.

FY25 performance: PAT up 30.7% to ₹2,508 crore

The sharper story was at the full-year level. For FY2025, ICICI Lombard reported profit after tax (PAT) of ₹2,508 crore, up 30.7% from ₹1,919 crore in FY2024.

In another disclosed set of FY2025 metrics, the company reported profit before tax (PBT) of ₹3,321 crore, up 30.0% from ₹2,555 crore in FY2024, with capital gains of ₹802 crore in FY2025 compared with ₹551 crore in FY2024.

The company also reported Return on Average Equity (ROAE) of 19.1% in FY2025, up from 17.2% in FY2024. For Q4 FY2025, ROAE was reported at 14.5%, compared with 17.8% in Q4 FY2024.

GDPI growth and comparison with industry

ICICI Lombard reported Gross Direct Premium Income (GDPI) of ₹26,833 crore in FY2025, an 8.3% rise from ₹24,776 crore in FY2024. The company stated this exceeded the general insurance industry growth of 6.2%.

When adjusted for new IRDAI norms (the 1/n accounting norm), the company said GDPI growth was 11.0%, versus an industry average of 8.6%.

For Q4 FY2025, GDPI was reported at ₹6,211 crore, up 2.3% from ₹6,073 crore in Q4 FY2024, and ahead of the industry growth of 1.7%.

Dividend: ₹7 final, total ₹12.5 for FY25

The board proposed a final dividend of ₹7 per share for FY2025, subject to shareholder approval at the upcoming AGM. Including the interim dividend, the total dividend for FY2025 stands at ₹12.5 per share, higher than the ₹11 declared in FY2024 (as stated in the provided data).

Solvency and balance sheet disclosures

The insurer’s solvency ratio was reported as 2.69x as of March 31, 2025, above the regulatory requirement of 1.5x.

Another disclosed data point stated that for the March quarter, the solvency ratio was 2.51x, compared with 2.45x in the December quarter and 2.46x in the year-ago March quarter.

The company also disclosed book value of ₹288.53 per share at end-March 2025 and book value including fair value change account of ₹292.2 per share.

Combined ratio and underwriting trend

ICICI Lombard reported that its combined ratio improved to 102.8% in FY2025 from 103.3% in FY2024. Excluding catastrophic losses of ₹94 crore in FY2025 and ₹137 crore in FY2024, the combined ratio was 102.4% and 102.5% respectively.

Separately, one set of FY2024 disclosures stated that the company improved its combined ratio to 103.3% from 104.5% in the previous year.

Market reaction and stock data points mentioned

Ahead of the earnings announcement, ICICI Lombard shares were reported to have closed 6.5% higher at ₹1,830 on the BSE.

Another market data point in the provided text noted that on a Tuesday ahead of results, shares closed nearly 3% higher at ₹1,136.90 on the NSE, and that the stock had slumped 9% so far that year.

The dataset also included a snapshot listing ICICI Lombard at ₹1,954.50 with P/E 34.74, market capitalisation ₹97,329.45 crore, dividend yield 0.65%, latest-quarter net profit ₹819.54 crore, and latest-quarter sales ₹6,869.33 crore.

Market leadership and segment positioning

The company was described as India’s largest non-life insurer by GDPI, with 9.4% market share as of H1 FY25.

Across commercial lines, its market share was stated as approximately 13% in fire, 17% in engineering, 21% in marine cargo, and 19% in liability insurance.

Key numbers table

Peer snapshot from the provided dataset

Why the FY25 result matters

The mix of a softer March quarter and a stronger full year highlights two things from the disclosed numbers. First, premium growth remained ahead of industry growth on a GDPI basis in FY25, which is central for a general insurer’s scale and franchise position. Second, underwriting and investment-related variability can affect quarterly profit even when annual profitability expands.

The FY25 combined ratio improvements and ROAE increase to 19.1% were presented as evidence of better underwriting performance and capital efficiency. At the same time, the reported 25.9% fall in quarterly operating profit indicates that underwriting pressures can still surface in specific periods.

Conclusion

ICICI Lombard’s Q4 FY25 profit slipped 1.9% year-on-year to ₹509.6 crore, but FY25 PAT rose 30.7% to ₹2,508 crore, supported by GDPI growth of 8.3% and a modest improvement in the combined ratio. The proposed final dividend of ₹7 per share takes the FY25 total to ₹12.5, subject to shareholder approval at the AGM.