Latest news with #ICICILombardGeneralInsurance
Mint
9 hours ago
- Automotive
- Mint
Behind ICICI Lombard's recent surge: What the headlines won't tell you
General insurance has caught investors' attention over the last few days. Reports indicate that the ministry of road transport and highways is considering an 18-25% hike in third-party motor insurance premiums. On cue, ICICI Lombard General Insurance, which claims 10.8% share of India's motor insurance market, surged 7% in a single day on Friday. Investor enthusiasm around the stock is not new. The stock has been outperforming over the last three years. While disappointing Q4 earnings had dampened sentiment in recent months, the latest development has breathed fresh life into the counter. Can this take the stock to new heights? Motor insurance is the mainstay For general insurers, automotive insurance constitutes a major chunk, around 30% of the business. About 60% of that is for insuring damages to third parties. Third-party insurance is compulsory according to the Motor Vehicles Act. The regulator has held premiums steady in the segment for the last four years. But with more vehicles on the road, claims and loss ratios have been on the rise. In the first half of FY25, the loss ratio for motor insurance stood at 124.8%, while that for the broader general insurance sector was much lower, at 113.2%. So, higher premiums promise to bring some much-needed relief to insurers. ICICI Lombard is a well-diversified multi-line insurer. But motor insurance constitutes 40% of its business, which is split equally between own damage and third-party damage. Health, travel, and personal accident insurance comprise the next largest segment at 29%, picking up pace over the last few years. Industry slowdown weighed on business The company has seen a robust 13.1% CAGR growth in its GDPI (gross direct premium income) over the last 17 years. In fact, FY23 and FY24 reported even faster expansion at 17-18%. But growth slowed down sharply to 8.3% in FY25. Q4 numbers were even worse, with weak investment income contributing to a 1.9% year-on-year decline in profit for the quarter. It is important to note, however, that this was an industry-wide phenomenon driven primarily by a slowdown in the sales of new vehicles during the year. With a muted 8% growth in the mainstay segment of motor insurance, the non-life insurance sector reported just 6.2% growth during the year. The new rules by the Insurance Regulatory and Development Authority (Irdai) mandating deferred accounting of long-term policies instead of billing them upfront also played a role. Adjusted for the new accounting norms, the industry reported 8.6% growth. Even as competition weighed on ICICI Lombard's group health insurance segment, it surpassed industry growth in other segments. The company's focused efforts on older vehicles and commercial vehicles, as well as its improved portfolio segmentation, have worked in its favour. Removing the impact of the new accounting norms, the company's GDPI outpaced the industry with 11% year-on-year growth. The lower loss ratio in motor insurance negated the rising losses in health and crop insurance. Overall loss ratio remained largely stable at 70.6% in FY25 versus 70.8% in FY24. Lower expense ratio continued the business' moderation in combined ratio (loss ratio + expense ratio) to 102.8%. Excluding the impact of catastrophic (CAT) losses, the ratio stood even lower at 102.4%. Its bottom line expanded by 30.7% to ₹2,508 crore during the year. Still, bogged down by the topline slowdown and brokerage downgrades, the counter corrected by as much as 4% following the earnings announcement. Also Read: United Spirits is on a high after RCB's IPL win, JP Morgan upgrade and UK FTA. Can it keep buzzing? Long-term industry prospects remain promising India is the fourth-largest non-life insurance market in Asia. But the premiums constitute only 1% of GDP, against a global average of 4%. Even compared to emerging economies, India's general insurance is underpenetrated. The total addressable market stands at $36 billion, and it has ample room for growth. Premiumization in automobiles and increasing EV adoption should support growth in motor insurance. Meanwhile, improving penetration in health, property and casualty insurance is expected to drive growth in these segments. Increasing penetration of digital insurance is also expected to push growth. Over the last three years, online motor insurance has seen much faster adoption in lower-tier cities. Against a 35% growth in online motor insurance in tier-1 cities, tier-2 and tier-3 cities have seen significantly higher growths at 70% and 110%, respectively. Also Read: These three large-cap stocks are trouncing the Sensex in 2025—so far Robust fundamentals ICICI Lombard is one of India's leading non-life insurers with 8.7% share of industry GDPI. While it commands barely 3% share of the health insurance segment, its expansive distribution through its promoter bank, 1.4 lakh individual agents and almost 1,000 virtual offices have helped it outpace the industry in other segments. It leads the property and casualty insurance segment with 13% share in fire insurance and 20% in marine insurance. It also has high double-digit shares of India's engineering and liability insurance segments. Since FY23, ICICI Lombard has outrun the industry with consistently superior fundamentals. The stock's outperformance over the last 3 years reflects this optimism. With a data analytics-driven approach, the company has been able to balance growth and risk management. Its focus on profitable growth through conservative underwriting has been bearing fruit. The combined ratio has improved over the years and is significantly ahead of the competition. Its reserves are also robust. Incurred but not reported (IBNR) utilization continued to improve during the year, indicating the robustness of reserves. The solvency ratio of 2.69x is comfortably ahead of the regulatory minimum of 1.5x and its peers. Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong? Strong outlook despite risks Anticipating a sustained slowdown in auto sales, the non-life insurance industry is likely to continue in the slow lane over the next couple of years. ICICI Lombard faces an additional risk from its health insurance segment, which has lagged the industry amid intense competition. Any further pickup in competition, spike in claims, or drop in investment income can weigh on the business. But the stiff pricing competition faced lately from public insurers in retail-focused segments should abate over the next few years, as players gradually conform to the regulatory cap of 30% on expenses of management (EOM), including commissions and promotional expenses. The company also stands to benefit from investments made in recent years towards the expansion of products and distribution in its health insurance segment. Any relief on GST in health insurance can also benefit the company. It is targeting a double-digit growth in the segment. Over the longer term, industry tailwinds should help support growth, while increasing digital penetration can improve profitability. ICICI Lombard's focus on enhancing penetration in tier-3 and tier-4 cities can be expected to drive growth for the company. Meanwhile, its conservative underwriting should support margins. Management has guided for its combined ratio to continue down the glide path to around 101.5% by FY27. Its target price has been pegged at ₹2,200 apiece, valuing the business at 32 times its FY27 earnings. This reflects an upside of 8% over current levels. For more such analysis, read Profit Pulse. Ananya Roy is the founder ofCredibull Capital, a SEBI-registered investment adviser. Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
&w=3840&q=100)
Business Standard
16-05-2025
- Business
- Business Standard
Insurance on WhatsApp: How to buy and manage policies, claim settlements
Paperwork reduced and instant assistance assured on platform, say top insurance companies WhatsApp serves various daily purposes: messaging, booking travel tickets and making cashless payments. Now, insurance companies are using the digital platform for selling policies and settling claims. Customers can manage their insurance plans in a WhatsApp conversation, just like texting a friend. Several top insurers and platforms have rolled out WhatsApp-based services. Here's a look at the frontrunners: HDFC ERGO General Insurance WhatsApp number: +91 8169500500 Offers policy purchases, renewals, claims, and health card access, all within the chat. Real-time claim tracking and 24/7 support make the experience user-friendly. ICICI Lombard General Insurance WhatsApp Number: +91 7738282666 From cyber to health insurance, users can buy, renew, and even get health tips. Claim filing and document retrieval happen seamlessly through chat. Policybazaar WhatsApp Number: +91 8506013131 The insurance aggregator enables quick policy recommendations, document access, and two-wheeler insurance renewals via integrated payments. Aditya Birla Health Insurance WhatsApp Number: +91 8828800035 Aims for a hassle-free experience with options for premium payments, renewals, and document uploads — all within a guided chat interface. Bajaj Allianz Life Insurance (BALIC) WhatsApp Number: +91 8806727272 Offers over 20 services, including claim tracking and premium payment. Users can switch from chatbot to live support for complex queries. Tata AIA Life Insurance WhatsApp Number: +91 7045669966 Provides term plans, ULIPs, and wellness rewards in chat. Policy tracking and coverage customization are just a message away. Why it matters WhatsApp insurance offers: Instant access to policy services Less paperwork and app fatigue Personalised support and reminders Secure, in-chat payment options
Time of India
11-05-2025
- Time of India
Cyber cops bust insurance scam: 25k vehicle owners cheated in Ghaziabad for one year
Ghaziabad: Two fraudsters who deceived over 25,000 people across the nation — among them 128 victims from the city — during the last one year under the pretext of providing vehicle insurance were arrested on Sunday. The financial impact of this fraud exceeds Rs 50 crore. Cyber police officials believe over one lakh people may have fallen prey to the scam over the last two years. Police are continuing to identify and reach out to more such victims.A senior police officer said that in addition to ICICI Lombard General Insurance, these accused also fabricated third-party insurance policies for many accused are Sartaj (51), a resident of Meerut, and Deepak Thakur (38), a resident of Kavi Nagar. Sartaj holds a BCom degree, while Thakur has a BA degree. These two were licensors at the RTO office in Ghaziabad. The accused were booked under Section 318 (4) (cheating) of the BNS and relevant sections of the IT Act at Cyber police station. A senior police officer said the two accused were sending details to a woman in Delhi. The woman, identified as Priya, used to make the insurance papers for two-wheelers and would send them to the accused. Later, they forwarded the documents to customers. A team has been formed to nab the woman and the mastermind, named Rohit Kumar. The officer said, the duo fabricated third-party insurance policies for other companies as well, including Magma HDI General Insurance, Chola MS General Insurance, Reliance General Insurance, Bajaj Allianz, Tata AIG Insurance, Zuno, National Insurance, SHRIRAM General Insurance Company Limited, HDFC Ergo, Royal Sundaram General Insurance and SBI General Insurance. Police are contacting these companies. A total of 84 counterfeit third-party insurance policies from various insurance companies have been recovered from the accused's mobile (crime & cyber) Piyush Kumar Singh said, "The perpetrators would collect complete premium payments from owners of aged commercial vehicles and lorries but would fraudulently alter the policy-generation application to issue two-wheeler insurance instead of coverage for heavy vehicles. The cost of insurance for a two-wheeler is around Rs 1,500, while the cost for four-wheelers and heavy vehicles is between Rs 15,000 to Rs 25,000."The ADCP said that on March 8, a complaint was filed by vice president of ICICI Lombard General Insurance Sanjay Thakur regarding the manipulation of the company's insurance app by two policy agents in Ghaziabad. The agents allegedly created fake insurance policies by misrepresenting commercial vehicles, private cars and goods carriers as two-wheelers. Operation Sindoor Op Sindoor: IC-814 hijackers, Pulwama plotters among over 100 terrorists killed 'We lost 5 soldiers in Operation Sindoor,' says DGMO 'Pak Army lost 35 to 40 personnel': Takeaways from armed forces' briefing on Op Sindoor An FIR was registered against two agents — Rohit and Vikash Kashyap. Rohit improperly issued 858 insurance policies with a premium of Rs 12.31 lakh while Vikas issued 128 policies with a premium of Rs 18.50 ADCP said four people were arrested on March 10. Those arrested include Vikas and Akash Sisodia from Richhalpuri, Kotwali, while Yakub and Arim were from Civil Lines, Moradabad. Rohit is absconding. Sartaj and Deepak were arrested after two more names were revealed by the gang. A few other names have also come under the scanner. The ADCP told TOI the proprietors of aged commercial vehicles and trucks generally purchase only third-party coverage. The sole purpose of such insurance is to seek compensation through legal channels following accidents, eliminating the need for additional verification processes. This creates opportunities for manipulation when issuing low-value third-party policies."These reduced-rate policies satisfy the requirement for online vehicle coverage, whilst vehicle owners remain oblivious to the fraudulent nature of their documentation," he said. Get the latest lifestyle updates on Times of India, along with Mother's Day wishes , messages , and quotes !
&w=3840&q=100)
Business Standard
08-05-2025
- Business
- Business Standard
Non-life insurers post 13.5% premium growth to Rs 33,688 cr in April
Gross direct premium underwritten by non-life insurers grew 13.5 per cent year-on-year (YoY) to Rs 33,688.48 crore in April, supported by healthy growth in premiums from multiline general insurers and standalone health insurers. According to data released by the General Insurance Council, general insurance companies recorded 14 per cent YoY growth in premiums to Rs 30,662 crore, while standalone health insurance companies posted an 11 per cent YoY growth to Rs 2,932.8 crore. Premium figures are not directly comparable with the same period last year (April 2024) due to a change in the accounting format by the insurance regulator, effective from October last year. Among major general insurers, state-owned New India Assurance reported a 14.6 per cent YoY rise in premiums to Rs 6,026 crore. ICICI Lombard General Insurance saw a 6.72 per cent increase to Rs 3,592 crore, while Bajaj Allianz General Insurance's premium remained flat at Rs 2,402.8 crore. National Insurance Company posted a 10.92 per cent rise to Rs 1,533.53 crore, Oriental Insurance saw a sharp 56.53 per cent YoY growth to Rs 2,692.88 crore, and United India Insurance recorded a 3.44 per cent increase to Rs 2,093.11 crore. Among standalone health insurers, the largest player—Star Health & Allied Insurance—reported a 4.63 per cent YoY rise in premium to Rs 1,060.13 crore. Care Health Insurance posted 8.72 per cent growth to Rs 724.48 crore. Meanwhile, specialised insurers saw their premium decline 20.25 per cent YoY to Rs 93.44 crore in April 2025. The market share of general insurers in April stood at 91.02 per cent, up from 90.70 per cent in April 2024. The share of standalone health insurers dropped to 8.71 per cent from 8.90 per cent in the same period.
&w=3840&q=100)
Business Standard
06-05-2025
- Business
- Business Standard
IFFCO-Tokio enters surety bonds business to support infra projects
IFFCO-Tokio General Insurance on Tuesday said it has entered the surety bonds business to support the infrastructure sector in the country. Currently, only a handful of insurers offer surety bonds, including New India Assurance, ICICI Lombard General Insurance, SBI General Insurance, HDFC ERGO General Insurance, Tata AIG General Insurance, and Universal Sompo General Insurance. Surety bonds are legally enforceable tripartite contracts that provide a hedge against risks associated with infrastructure projects. 'Surety bonds provide solutions to many issues faced by the infrastructure sector. On one hand, they help widen the contractors' pool for government departments or PSUs/PSEs; on the other, they enlarge the project-taking capacity of infrastructure companies, especially small and medium-sized contractors. Besides financial benefits, they help build a bond of trust among all stakeholders,' said Subrata Mondal, managing director and chief executive officer of IFFCO-Tokio. According to the insurer, the construction industry alone has already offered bank guarantees (BGs) worth Rs 1.70 trillion so far, with this figure projected to grow to Rs 3 trillion by 2030. Surety bond insurance is a risk mitigation solution aimed at supporting India's infrastructure sector. The insurance regulator had permitted general insurers to issue surety insurance bonds in April 2022. Bajaj Allianz General Insurance was the first company to launch the product. However, the issuance of surety bonds remains muted due to several challenges, including collaboration between banks and insurance companies, data sharing, regulatory parity, and the inability to strengthen the enforceability of agreements between insurers and bond beneficiaries. The insurance regulator had also formed a task force comprising banks, insurers, and reinsurers to address these challenges and drive growth in the segment.
