ICICI Lombard General Insurance reported a decline in profitability during the third quarter of the current financial year, with net profit falling 9% year-on-year despite strong premium growth. The results came in below market expectations, reflecting challenges in the insurance sector.

Financial Performance Overview

The company's financial performance for the October-December period showed mixed results:

The net profit of ₹658.00 crore fell significantly short of the consensus estimate of ₹800.00 crore compiled by NDTV Profit, indicating weaker-than-expected performance.

Premium Growth and Profitability Metrics

Despite the profit decline, ICICI Lombard demonstrated strong growth in premium collection. Net premium earned increased nearly 13% year-on-year to ₹5,685.00 crore, while gross premium jumped 15% to ₹7,433.00 crore, indicating robust business expansion and customer acquisition.

The combined ratio, a critical profitability metric that measures how much an insurer spends on claims and operating expenses for every rupee of premium earned, presented concerning trends. The ratio stood at 104.50%, which means the company spent ₹104.50 for every ₹100.00 earned in premiums. This ratio declined sequentially by 60 basis points but rose by 180 basis points on a year-on-year basis.

Market Performance

Shares of ICICI Lombard settled 1% lower at ₹1,885.50 on the NSE ahead of the results announcement, compared to a 0.20% decline in the benchmark Nifty 50. On a longer-term basis, the stock has gained 3% over the past 12 months, showing resilience despite recent challenges.

The quarterly results highlight the ongoing challenges in the general insurance sector, where companies are balancing growth ambitions with profitability pressures amid rising claims and operational costs.

ICICI Lombard General Insurance Co. Ltd released its consolidated financial results for the third quarter on Tuesday, January 13, 2026, showing mixed performance with declining profitability despite strong premium income growth. The general insurance company's financial metrics reflect varying operational dynamics during the reporting period.

Financial Performance Overview

The company's third quarter results present a contrasting picture of revenue growth alongside profit compression. Key financial highlights demonstrate the complex nature of insurance business operations during the quarter.

Premium Income Growth

The insurance company achieved notable growth in premium income, recording a 12.6% year-on-year increase during the third quarter. This growth in premium collections indicates strong business momentum and customer acquisition efforts across various insurance product segments. The double-digit premium growth reflects the company's market positioning and distribution network effectiveness.

Profitability Trends

Despite the positive premium income trajectory, net profit experienced a decline of 9% to ₹658.00 crore compared to the corresponding quarter in the previous year. The profit compression alongside revenue growth suggests potential impacts from claims experience, operational expenses, or investment income variations during the quarter.

Market Context

The financial results were announced through consolidated financial statements, providing a comprehensive view of the company's performance including subsidiary operations. The mixed performance metrics reflect broader industry dynamics where premium growth may not immediately translate to proportional profit expansion due to various operational and market factors affecting general insurance companies.