ICICI Lombard is set to release its Q4FY25 earnings report, and analysts are keenly watching several key indicators. Ahead of the report, the company's stock saw gains of over 3%, trading at Rs 1,770.7 per share on the BSE.

Zee Business research suggests a mixed earnings report for the quarter ending March 2025. The non-life insurance sector experienced slow premium collection growth at just 6% during FY25, which is expected to impact ICICI Lombard's earnings. The auto insurance business is also anticipated to face headwinds, affecting the overall premium collection. However, the company is expected to maintain or improve its market share.

The report forecasts a 15% year-on-year increase in net premium, reaching Rs 5,050 crore compared to Rs 4,368 crore in the same period last year. ICICI Lombard's bottom line is projected to grow by 12% year-on-year, with profits rising to Rs 580 crore from Rs 519 crore in the previous year, driven by cost containment measures.

The combined ratio, a critical profitability metric in the insurance industry, is expected to rise to 103.4 from 102.2 in the same quarter last year, reflecting increased claims and operational costs. A combined ratio above 100% indicates underwriting losses.

Investors and analysts will be closely monitoring ICICI Lombard's commentary on the sales decline in the auto segment and its subsequent impact on auto insurance. The Annualised Premium Equivalent (APE) is projected to increase by 39% year-on-year, reaching Rs 6,069 crore, compared to Rs 4,368 crore in the corresponding period last year. APE is a key metric for assessing new business earned, encompassing both single and regular premiums.

Avinash Gorakshakar from ProfitMart Securities anticipates that ICICI Lombard will report favorable year-on-year results in terms of both income and profitability for the March quarter. He recommends investors to remain invested in the stock, based on expectations of solid numbers.