ICICI Lombard Posted Q1 FY26 Results with 28.7% YoY PAT Growth

ICICI Lombard General Insurance Company Limited (NSE: ICICIGI) posted its performance for the quarter ended June 30, 2025, despite regulatory adjustments impacting premium recognition norms.

New Accounting Norms Impact Comparability

Effective October 1, 2024, the Insurance Regulatory and Development Authority of India (IRDAI) mandated the 1/n accounting method for long-term products. Due to this change, the Q1 FY2026 results are not directly comparable with earlier quarters. This adjustment impacted the way Gross Direct Premium Income (GDPI) is recorded, particularly for long-tenure policies.

Modest Growth in GDPI Amid Industry Acceleration

The company's GDPI stood at ₹77.35 billion in Q1 FY2026, registering a marginal growth of 0.6% over ₹76.88 billion in Q1 FY2025. This was significantly below the industry’s growth rate of 8.8% for the quarter. However, when adjusted for the 1/n accounting impact, ICICI Lombard’s GDPI reflected a healthier growth of 4.8%, although it still trailed the industry’s adjusted growth of 12.8%.

Stable Underwriting Metrics

The combined ratio, a key measure of profitability in the insurance sector, stood at 102.9% in Q1 FY2026 versus 102.3% in Q1 FY2025. This slight uptick indicates continued pressure on underwriting margins, though the ratio remains within manageable levels.

Bottom-Line Growth

Despite subdued premium growth, the company posted a strong 28.4% year-on-year rise in Profit Before Tax (PBT), reaching ₹9.94 billion in Q1 FY2026, supported by capital gains of ₹3.80 billion. Profit After Tax (PAT) rose 28.7% to ₹7.47 billion, up from ₹5.80 billion in Q1 FY2025. Return on Average Equity (ROAE) also improved to 20.5% from 19.1% a year ago.

Comfortable Solvency Position

ICICI Lombard maintained a robust solvency ratio of 2.70x as of June 30, 2025, compared to 2.69x in March 2025, well above the regulatory minimum of 1.50x, reflecting strong capital adequacy.

ICICI Lombard General Insurance Share Price Performance

On July 16, 2025, ICICIGI share price opened at ₹2,030.00, up from its previous close of ₹2,002.70. At 11:30 AM, the share price of ICICIGI was trading at ₹2,033.60, up by 1.54% on the NSE.

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Conclusion

While regulatory changes have made comparisons challenging, ICICI Lombard has showcased operational resilience with profitability and a solvency profile. Its ability to maintain returns and margins amid changing industry dynamics reinforces its position as one of India’s leading general insurers.

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