ICICI Lombard General Insurance Q3 Net Profit Declines 9% to ₹659 Crore

ICICI Lombard General Insurance reported mixed quarterly results for Q3 FY26, with net profit declining despite robust premium growth. The general insurance company faced headwinds from higher claims and underwriting challenges that impacted overall profitability.

Financial Performance Overview

The company's financial metrics for the quarter presented a contrasting picture of growth and profitability challenges:

Metric	Q3 FY26	Q3 FY25	Change
Net Profit	₹659.00 crore	₹724.00 crore	-9.0%
Gross Direct Premium Income	₹7,041.00 crore	₹6,214.00 crore	+13.3%
Combined Ratio	104.5%	102.7%	+1.8 pp
Return on Average Equity	16.5%	21.5%	-5.0 pp

Premium Growth Outpaces Industry

Despite profitability challenges, ICICI Lombard demonstrated strong business momentum with gross direct premium income growing 13.3% year-on-year to ₹7,041.00 crore. This growth rate significantly outpaced the industry average of 11.5%, indicating the company's competitive positioning and market share gains during the quarter.

Underwriting Performance Under Pressure

The company's underwriting performance deteriorated during the quarter, with the combined ratio worsening to 104.5% from 102.7% in Q3 FY25. The pressure was particularly evident in motor and health insurance lines, which are key segments for the company. A combined ratio above 100% indicates that the company paid out more in claims and expenses than it collected in premiums, highlighting operational challenges.

Impact of GST Rationalization

Regarding GST rationalization measures, the company stated that benefits have been fully passed on to customers. In response to this regulatory change, ICICI Lombard has moved to recalibrate its cost structure to maintain operational efficiency and competitiveness in the market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.30%	-4.77%	-2.70%	-6.30%	+2.64%	+20.41%

ICICI Lombard General Insurance reported mixed financial results for Q3, with net profit declining despite strong revenue growth. The general insurance company's performance reflects the challenging operating environment in the insurance sector.

Financial Performance Overview

The company's Q3 financial metrics present a contrasting picture of growth and profitability challenges:

Metric	Q3 Current Year	Q3 Previous Year	Change
Net Profit	₹660.00 crores	₹724.00 crores	-8.8%
Revenue	₹5,685.00 crores	₹5,045.00 crores	+12.7%
Combined Ratio	104.5%	102.7%	+1.8 percentage points

Revenue Growth Momentum

Despite profitability pressures, ICICI Lombard demonstrated robust revenue growth of 12.7% year-on-year, with total revenue reaching ₹5,685.00 crores compared to ₹5,045.00 crores in the corresponding quarter of the previous year. This growth indicates the company's ability to expand its business volume and market presence in the competitive general insurance landscape.

Profitability and Combined Ratio Analysis

The company's net profit declined to ₹660.00 crores from ₹724.00 crores in the previous year's Q3, representing an 8.8% decrease. This decline coincided with a deterioration in the combined ratio, which increased to 104.5% from 102.7% year-on-year.

The combined ratio is a critical metric for insurance companies, measuring the relationship between claims and expenses against premiums earned. A ratio above 100% indicates that the company is paying out more in claims and expenses than it collects in premiums, suggesting underwriting losses. The increase of 1.8 percentage points to 104.5% reflects higher claims costs or expenses relative to premium income during the quarter.