Page 7 - Insurance Times June 2024

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ICICI Lombard General posts 18.9% rise in net profit funds. "Any stake sale in LIC will be
done in small tranches considering the
ICICI Lombard reported an 18.9% increase in its net profit to Rs 519.50 large size of the over," the official said.
crore in the January-March quarter of the financial year 2023-24 from Rs A sale of 1.5 per cent stake in LIC can
436.96 crore in the corresponding year-ago period, driven by healthy growth help the government garner about Rs.
in premium and investment income. 92 billion, as per stock's closing price.
Sequentially, the net profit grew by 20.40% from Rs 431.46 crore in the
third quarter of FY24. Market share of Private
The gross direct premium income (GDPI) of the insurer was 22% higher at General Insurers increase
Rs 6,073 crore in Q4 FY24 from Rs 4,977 crore in Q4 FY23.
Private sector non-life insurance com-
The net premium income rose by 17.23% to Rs 4,368 crore in the quarter panies have increased their market
under review from Rs 3,726 crore year-on-year (YoY). The net investment share in the financial year 2023-24
income of the company improved nearly 15% YoY to Rs 765.55 crore from (FY24) amid intense competition in the
Rs 665.93 crore. Capital gains of the company were at Rs 156 crore in Q4 sector, mainly in the health and motor
FY24 as against Rs 159 crore in Q4 FY23. businesses. The overall market share of
private non-life insurers has witnessed
Government may sell India's fiscal year runs April through a sustained increase to 65 per cent for
March. Shares of GIC have risen about FY24 from 62 per cent in FY23 and 59
stake in GIC Re, LIC in fis- 45 per cent in the last six months. per cent in FY22 highlighting the per-
cal 2024-25 For LIC, the government plans to stick sistent growth differential between
The government is open to a minority to its target of offloading 10 per cent the public and private sectors.
stake sale in GIC Re and LIC in finan- stake over 7 years and 25 per cent over The non-life general insurance industry
cial year 2024/25 after assessing inves- 10 years since the listing in 2022, the reported a lower growth during FY24
tor appetite, a government source told source said. However, LIC stakes would with a premium income of Rs 2.89 lakh
Reuters. be sold in "small" tranches depending crore, a rise of 12.78 per cent com-
"The government has received good on the insurer's stock performance and pared to the 16.3 per cent growth in
feedback in investor roadshows for GIC, gauging investor appetite, the source premium income at Rs 2.56 lakh crore
and is open to sell its 10 per cent stake said. Shares of country's largest insurer in FY23, according to figures released
in tranches depending on its shares' have jumped 58 per cent in the last six by the General Insurance Council.
value," the official said. The sale of 10 months and closed at Rs. 973. Competition is likely to increase, espe-
per cent stake in GIC would be done In LIC's IPO, the government had sold cially in the health segments as new
over a period of time, the official said, 3.5 per cent stake in the company, and companies have commenced opera-
garnering about Rs. 57 billion ($683 had planned to offload another 1.5 per tions while others are waiting in the
million), as per the closing price. cent for the insurer's inclusion in index wings to enter the segment. Till date,

The Insurance Times June 2024 7