ICICI Lombard General Insurance Company has announced ambitious targets for return on equity (ROE) and key business segments, signaling confidence in its growth strategy amid a robust financial performance in the second quarter.

ROE and Loss Ratio Targets

The management of ICICI Lombard has set a return on equity target of 18-20%, demonstrating a strong commitment to shareholder value. Additionally, the company aims to maintain retail health indemnity loss ratios at 65-70% and motor business loss ratios at 65-67%, indicating a focus on profitability in these crucial segments.

Q2 Financial Highlights

ICICI Lombard's financial results for Q2 showcase the company's resilience and growth:

• Profit After Tax (PAT) grew by 18.1% to ₹820.00 crore, up from ₹694.00 crore in the same quarter of the previous year.
• Gross Direct Premium Income (GDPI) stood at ₹6,596.00 crore, reflecting a slight decrease of 1.9% year-on-year.
• Combined ratio was at 105.1%, compared to 104.5% in the corresponding quarter of the previous year.

Key Performance Metrics

Growth Outlook

Management anticipates better growth in the second half, citing recent changes and positive trends discussed during their conference call. This optimistic outlook aligns with the company's strategic targets and suggests potential for improved performance in the coming quarters.

Dividend Announcement

In a move that further underscores the company's strong financial position, ICICI Lombard's Board of Directors has declared an interim dividend of ₹6.50 per equity share for H1, an increase from ₹5.50 per share for H1 of the previous year.

Conclusion

ICICI Lombard's ambitious ROE target and strong Q2 performance demonstrate the company's commitment to growth and profitability. As the company navigates the evolving insurance landscape, investors and industry observers will be keen to see how these targets translate into long-term value creation.

ICICI Lombard General Insurance Company Limited , one of India's leading private general insurers, has outlined its strategic vision for sustainable growth and profitability. The company aims to maintain consistent profit growth with a return on equity (ROE) exceeding 20% and has reported a significant 22% increase in profit after tax for the half-year ended September 30, 2025.

Financial Performance Highlights

For the half-year ended September 30, 2025, ICICI Lombard reported impressive financial results:

The company's profit after tax grew by a robust 22.9% year-on-year, demonstrating strong financial performance despite a slight decrease in gross direct premium income. The return on average equity improved to 20.8%, aligning with the company's strategic goal of maintaining ROE above 20%.

Strategic Focus Areas

ICICI Lombard is emphasizing several key areas to drive growth and maintain its market leadership:

1. Digital Insurance Solutions: The company is leveraging technology to enhance its digital offerings, aiming to improve customer experience and operational efficiency.

2. AI-Powered Risk Management: Implementing advanced artificial intelligence solutions for better risk assessment and management.

3. Capital Position: Maintaining a strong capital base with a solvency ratio of 2.73 times as of September 30, 2025, well above the regulatory requirement of 1.50 times.

4. Product Innovation: Continuing to focus on developing comprehensive and diverse insurance products to meet evolving customer needs.

5. Distribution Network Expansion: Strengthening its multi-channel distribution strategy to deepen market penetration.

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹6.50 per share for H1 FY2026, an increase from ₹5.50 per share in H1 FY2025, reflecting the company's strong financial position and commitment to shareholder returns.

Market Position and Future Outlook

ICICI Lombard continues to hold a significant market share in the Indian general insurance sector. The company's focus on digital transformation and customer-centric innovations positions it well to capitalize on the growing insurance market in India.

Sanjeev Mantri, Managing Director & CEO, commented on the results, stating, "Our consistent performance and strategic initiatives have set a strong foundation for future growth. We remain committed to leveraging technology and innovation to enhance our product offerings and customer service, while maintaining our focus on profitability and shareholder value creation."

As ICICI Lombard navigates the evolving insurance landscape, its emphasis on digital solutions, risk management, and financial prudence is expected to play a crucial role in achieving its ambitious growth targets and maintaining its leadership position in the Indian general insurance market.