ICICI Lombard General Insurance Company Limited announced its audited financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with profit growth despite operational challenges. The company's Board of Directors approved the results at their meeting held on January 13, 2026.

Financial Performance Overview

The insurance major reported steady profit growth for the quarter ended December 31, 2025. Net profit after tax stood at ₹658.76 crores compared to ₹724.38 crores in the corresponding quarter of the previous year, representing a 9.1% year-on-year increase. For the nine-month period, the company achieved a net profit of ₹2,225.38 crores against ₹1,998.70 crores in the previous year.

Premium Growth and Business Expansion

The company demonstrated strong top-line growth with gross premiums written increasing by 14.8% to ₹7,432.98 crores in Q3FY26 from ₹6,474.45 crores in Q3FY25. Net premium written also showed robust growth of 17.3% to ₹5,963.48 crores. For the nine-month period, gross premiums written reached ₹22,544.39 crores compared to ₹21,353.80 crores in the previous year, marking a 5.6% increase.

Underwriting and Claims Performance

The company faced underwriting challenges during the quarter, reporting an underwriting loss of ₹353.78 crores compared to a loss of ₹152.30 crores in Q3FY25. Incurred claims increased significantly, with claims paid rising to ₹3,427.75 crores from ₹3,203.56 crores in the previous year. The combined ratio stood at 104.5% for the quarter, indicating underwriting pressure.

Investment Income and Solvency

Investment income remained a key contributor to profitability, with net investment income of ₹909.01 crores in Q3FY26 compared to ₹839.82 crores in the previous year. The company maintained a strong solvency ratio of 2.69 as of December 31, 2025, compared to 2.36 in the previous year, demonstrating robust financial strength.

Dividend Declaration and Capital Structure

The Board declared an interim dividend of ₹6.50 per equity share of face value ₹10 each, which was paid during the quarter ended December 31, 2025. The company's paid-up equity capital stood at ₹498.04 crores as of December 31, 2025. During the quarter, the company allotted 579,206 equity shares pursuant to employee stock option exercises.

Segment Performance Highlights

The company's motor segment, which forms the largest portion of its business, reported net premium earned of ₹2,804.21 crores in Q3FY26. The health insurance segments showed mixed performance, with health retail earning ₹551.32 crores and health group corporate earning ₹1,612.18 crores in net premiums. Fire insurance segment demonstrated strong underwriting profit of ₹131.14 crores during the quarter.

The results reflect ICICI Lombard's continued market presence despite facing industry-wide challenges in underwriting profitability, with the company maintaining its focus on premium growth and investment income generation.

ICICI Lombard General Insurance has secured a major legal victory with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) approving its appeals related to service tax requests totaling ₹2,282.60 crore. This favorable ruling provides significant relief to the insurance company from substantial regulatory pressures that had been weighing on its operations.

CESTAT Ruling Details

The tribunal's decision to approve ICICI Lombard's appeals represents a crucial development in the company's ongoing tax disputes. The service tax requests in question amounted to a substantial ₹2,282.60 crore, making this ruling particularly significant for the insurer's financial standing.

Legal and Financial Implications

The CESTAT approval effectively eases the major legal pressures that ICICI Lombard had been facing regarding these service tax matters. This development removes a significant regulatory overhang that could have impacted the company's financial performance and operational flexibility.

The resolution of this substantial tax dispute provides the insurance company with greater certainty regarding its regulatory obligations and potential financial liabilities. Such favorable tribunal decisions typically contribute to improved business confidence and operational stability for affected companies.

Regulatory Relief

This CESTAT ruling marks an important milestone in ICICI Lombard's regulatory compliance journey. The approval of appeals worth ₹2,282.60 crore demonstrates the company's successful defense of its position before the appellate tribunal, validating its approach to service tax matters.