ICICI Lombard Acquires 0.19% Stake in HDFC Life for ₹233 Crore

25 Nov 2024 , 12:03 PM

ICICI Lombard General Insurance acquired a 0.19% equity interest in HDFC Life Insurance Company Ltd for ₹233 crore. The acquisition was done on November 22, 2024, through cash consideration during market hours. ICICI Lombard said there are no related party relationships with HDFC Life with respect to the acquisition.

HDFC Life is a major life insurance solutions company that accommodates customers with differing forms of protection, savings, investment, annuity, and health products.

The promoter and promoter group companies of ICICI Lombard may have business dealings with HDFC Life on arms’ length basis. ICICI Lombard reported a 20.2% net profit growth in Q2 FY25, at ₹694 crore, as compared to ₹577 crore of Q2 FY24.

Gross Direct Premium Income (GDPI) during Q2 FY25 was up by 10.4% with the value reaching ₹6,721 crore, way ahead of industry growth rate of 2% in the comparable period. The gross direct premium income of ICICI Lombard during the first half of FY25 (H1 FY25) grew up by 15.5% ₹14,409 crore as compared to ₹12,472 crore for H1 FY24.

Apportioning crop and mass health, the GDPI growth was at 15.0% in H1 FY25 vs. an industry growth rate of 10.9%. Q2 FY25 combined ratio, that is, profitability ratio was at 104.5%. It was slightly better than 103.9% in Q2 FY24, mainly on account of increased claims and expenses. After adjusting for the catastrophic losses at ₹94 crore in Q2 FY25, the combined ratio was at 102.6%, where it is compared to Q2 FY24’s at 102.8%.