ICICI Lombard reports 47% increase in net profit to Rs 746.6 crore, driven by motor segment growth

ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Ltd. reported a net profit after tax of Rs 746.6 crore, marking a strong 47.6 percent jump year-on-year from Rs 505.9 crore in Q1 FY25.

The surge was primarily driven by higher investment income and a recovery in underwriting performance, particularly in the Motor segment, according to a BSE filing by the company.

Gross premiums written during the quarter stood at Rs 8,05,255 lakh, a 1.5 percent increase from Rs 7,93,105 lakh in the same quarter last year.

Net premiums written rose to Rs 5,61,052 lakh, up 4.7 percent from Rs 5,36,053 lakh in Q1 FY25. Net premium earned came in at Rs 5,13,609 lakh, registering a 14 percent growth from Rs 4,50,388 lakh last year.

Total income surged to Rs 6,08,336 lakh in Q1 FY26 compared to Rs 5,35,195 lakh in the previous year’s first quarter, bolstered by a sharp rise in investment income.

Net income from investments increased to Rs 94,274 lakh, up 11.6 percent from Rs 84,457 lakh in Q1 FY25.

The company reported a total expense of Rs 5,42,923 lakh, up from Rs 4,85,048 lakh in Q1 FY25.

Incurred claims were Rs 3,75,010 lakh (inclusive of paid and outstanding claims), compared to Rs 3,33,441 lakh in the corresponding quarter last year. Operating expenses related to the insurance business rose moderately to Rs 73,838 lakh.

Despite the higher claims, the company posted an underwriting profit of Rs 1,29,314 lakh, reversing an underwriting loss of Rs 13,466 lakh in Q4 FY25 and showing significant improvement over the Rs 1,34,660 lakh underwriting profit in Q1 FY25.

The Motor insurance segment remained a major contributor with Rs 2,67,490 lakh in net premium earned, up 13.5 percent year-on-year. It also reported the highest segment operating profit of Rs 54,950 lakh in Q1 FY26 compared to Rs 37,470 lakh in the year-ago quarter.

Health Group/Corporate showed a sharp turnaround with a segment operating profit of Rs 1,064 lakh in Q1 FY26, compared to a loss of Rs 1,153 lakh in Q1 FY25. Retail Health, however, reported an operating loss of Rs 8,456 lakh.

The Fire segment posted a healthy operating profit of Rs 11,151 lakh, while the Marine and Crop Insurance segments remained subdued with operating losses of Rs 1,577 lakh and profit of Rs 230 lakh respectively.

As of June 30, 2025, the company’s total assets stood at Rs 5,586,448 lakh, up from Rs 5,416,094 lakh as of March 31, 2025. Investments from shareholders and policyholders stood at Rs 1,430,434 lakh and Rs 4,114,901 lakh respectively.

The company maintained a solvency ratio of 2.70, above the regulatory requirement.

The combined ratio stood at 102.5 percent for Q1 FY26, marginally improved from 102.8 percent in Q1 FY25. The company maintained a stable claims ratio at 69.7 percent and a retention ratio of 73 percent.

As of market close on July 14, 2025 at 3:56 pm, ICICI Lombard closed at Rs 2,019.70.