ICICI Lombard General Insurance, a leading non-life insurer in India, reported a 2% decrease in net profit for the fourth quarter ending March 31, 2025, amounting to ₹5.10 billion ($59.5 million). This figure fell short of analysts' expectations of ₹5.92 billion.

The decline in profit is primarily attributed to a significant 25.5% increase in claims, which totaled ₹35.10 billion for the quarter. Additionally, a regulatory change implemented in October now requires insurers to distribute long-term policy premiums over the policy's duration, rather than recognizing the entire amount upfront. This adjustment has impacted the reported premiums for the quarter.

Despite these challenges, ICICI Lombard experienced growth in certain segments. Retail health insurance premiums surged by approximately 30%, driven by heightened awareness and escalating medical costs. Motor insurance premiums also saw an 18% increase.

The company's gross premiums rose by 10% year-on-year to ₹69.04 billion, although this growth rate is slower compared to the 17% increase observed in the same quarter of the previous year. The combined ratio, a key profitability metric, edged up to 102.5% from 102.3% a year earlier, indicating that claims and expenses slightly exceeded premium income.

Interestingly, despite the earnings miss, ICICI Lombard's shares closed 6% higher ahead of the results announcement, suggesting investor confidence in the company's long-term prospects.

As the company navigates these regulatory changes and rising claim costs, its performance in the upcoming quarters will be closely monitored by stakeholders and industry analysts alike.