ICICI Lombard General Insurance , one of India's leading private sector general insurance companies, has reported a robust 22.9% growth in Profit After Tax (PAT) for the first half of FY2026, despite facing headwinds in premium growth. The company's financial results for H1 FY2026 showcase its resilience and strategic focus on profitability in a competitive market environment.

Financial Highlights

• Profit After Tax (PAT) increased by 22.9% to ₹15.67 billion in H1 FY2026, up from ₹12.74 billion in H1 FY2025.
• Gross Direct Premium Income (GDPI) saw a marginal decline of 0.5% to ₹143.31 billion, against the industry growth of 7.3%.
• Excluding Crop and Mass Health segments, the company achieved a 3.5% growth compared to the industry's 10.5%.
• Combined ratio deteriorated slightly to 104.0% from 103.2%, primarily due to catastrophic events including floods.
• Investment income rose to ₹25.38 billion from ₹22.52 billion in the previous year.
• The Board declared an interim dividend of ₹6.50 per share, up from ₹5.50 in the previous year.

Segment Performance

The company's Retail Health business demonstrated particularly strong growth, improving its market share from 3.2% to 3.7%.

Market Position and Strategy

Despite the overall GDPI decline, ICICI Lombard maintained its leadership in key segments:

• Retained the top position in Engineering, Liability, and Marine Cargo lines of business.
• Continued leadership in the Motor segment with a 10.4% market share in H1 FY2026.

The company's management expressed optimism about recent GST reforms, particularly the exemption on individual health insurance premiums and reduced GST rates in the automobile sector, which are expected to benefit the insurance industry.

Future Outlook

ICICI Lombard remains focused on driving profitable growth and sustainable value creation. The company is well-positioned to capitalize on the expected increase in demand for health and motor insurance following the recent GST reforms.

The management anticipates that the GST changes may make healthcare protection more affordable for households and potentially increase vehicle ownership, both of which could drive growth in their respective insurance segments.

Investor and Analyst Perspective

During the earnings conference call, the company's leadership, including MD & CEO Sanjeev Mantri and CFO Gopal Balachandran, highlighted the positive impact of recent regulatory actions and reforms. They expressed confidence in the company's ability to capitalize on growth opportunities across various business streams.

The management reaffirmed their commitment to maintaining a Return on Average Equity (ROAE) in the range of 18-20%. For H1 FY2026, the ROAE stood at 20.8%, compared to 20.3% in H1 FY2025.

As ICICI Lombard navigates through the evolving market dynamics, its focus on prudent risk selection, operational efficiency, and strategic growth initiatives positions it well to leverage the anticipated upturn in the insurance sector.

The Orissa High Court has directed the Central Bureau of Investigation (CBI) to reinvestigate a series of fraudulent motor accident claims involving vehicles insured with ICICI Lombard General Insurance Company . This development comes amidst the company's efforts to maintain transparency and address financial discrepancies.

Scope of the Investigation

The case involves 34 Motor Accident Claim Tribunal cases stemming from 29 alleged road traffic accidents. The total compensation claims amount to approximately Rs 5.00 crore, highlighting the significant financial implications of the fraud.

ICICI Lombard's Internal Findings

ICICI Lombard's internal investigation uncovered several serious irregularities:

• Vehicle implanting in accidents
• The same driver appearing in multiple accidents
• Manipulation of medical records

These findings prompted the company to report the matter to the Crime Branch and seek a stay on tribunal proceedings through the High Court.

Legal Proceedings

The Crime Branch confirmed the irregularities in their affidavit to the court. Given the scale and complexity of the fraudulent claims, the High Court has assigned the CBI to handle the reinvestigation.

Company's Financial Performance

While dealing with these legal challenges, ICICI Lombard continues to maintain strong financial performance. According to the company's recent investor presentation:

• Gross Written Premium (GWP) stood at Rs 151.11 billion
• Profit After Tax (PAT) was Rs 15.67 billion, showing a growth of 22.9%
• The company's Combined Ratio (CoR) was 104.0% on a 1/n basis

Transparency Measures

In line with its commitment to transparency, ICICI Lombard recently issued a clarification regarding an increase in trading volume of its securities. The company stated that it has made all necessary disclosures as per SEBI regulations and attributes the volume increase to market-driven factors.

Additionally, the company acknowledged and corrected typographical errors in its investor presentation, demonstrating its commitment to accurate reporting.

Market Position

Despite the ongoing investigation, ICICI Lombard maintains a strong market position:

• Holds an industry-leading position with a 10.4% market share
• Experienced growth in new private car business (17.8%) and two-wheeler business (8.5%), outpacing industry growth

As the CBI probe unfolds, ICICI Lombard's handling of this situation will be crucial for maintaining investor confidence and its market standing in the competitive insurance sector.