Detailed Narrative
Q4 & FY2026 Performance Overview
ICICI Lombard reported a Gross Direct Premium Income (GDPI) growth of 7.0% for FY2026, compared to the industry growth of 9.2%. However, the company demonstrated strong momentum in the latter half of the year, achieving 18.2% growth in Q4 FY2026 and 15.7% in H2 FY2026, significantly outpacing the industry's 10.9% and 11.2% growth respectively for the same periods. Excluding Crop and Mass Health segments, the company's GDPI growth stood at 10.2% for FY2026.
Segmental Performance: Health, Motor, and Commercial Lines
The Health segment was a key growth driver, expanding by 20.0% for FY2026 against an industry growth of 15.4%, with Q4 FY2026 growth at a robust 38.2%. Retail Health, in particular, grew 51.1% for FY2026, increasing its market share from 3.3% to 4.1%. The Motor segment grew 7.6% for FY2026, with H2 FY2026 growth of 12.0% exceeding the industry's 10.5%. In contrast, the Commercial lines segment saw muted growth of 5.4% for FY2026, lagging the industry's 12.2% due to competitive intensity and pricing pressure, especially in the Fire segment.
Underwriting Performance and Combined Ratio
The company's Combined Ratio (CoR) on an 'n' basis for FY2026 was 102.4%, a slight improvement from 102.6% in FY2025. On a 1/n basis, the CoR for FY2026 was 103.4%. Excluding the impact of the wage code, the FY2026 CoR stood at 102.1% ('n' basis) and 103.1% ('1/n' basis). For Q4 FY2026, the CoR on an 'n' basis was 100.5%, down from 102.1% in Q4 FY2025. The industry's overall CoR deteriorated from 113.2% in 9M FY2025 to 119.3% in 9M FY2026, with Motor CoR remaining elevated at 128.1%.
Profitability and Solvency
Profit Before Tax (PBT) grew 10.2% to ₹36.59 billion for FY2026. Profit After Tax (PAT) on a 1/n basis increased 10.5% to ₹27.72 billion for FY2026, and on an 'n' basis, PAT grew 14.1% to ₹27.61 billion. Return on Average Equity (ROAE) was 17.8% for FY2026, compared to 19.1% in FY2025. The solvency ratio stood at a healthy 2.67x at March 31, 2026, well above the minimum regulatory requirement of 1.50x, though it was impacted by 14 basis points due to Mark to Market losses on the equity portfolio.
Key Initiatives and Digital Transformation
ICICI Lombard highlighted its 'One IL, One Team' philosophy and key initiatives. 'IL OneForce', an enterprise productivity platform, is used by over 10,000 sales employees and aims to be the single operating platform for all 15,000+ employees. The 'IL TakeCare' app achieved 21.0 million downloads by March 31, 2026, with gross written premium from the app reaching ₹5,170.7 million in FY2026. The 'One IL One Call Centre' initiative has led to 69% of service engagements being executed digitally in March 2026, improving Call Centre NPS to 74 in Q4 FY2026 from 60 in Q1 FY2026.
Regulatory Updates and Industry Outlook
The company acknowledged the IRDAI mandate for insurers to prepare financial statements under Ind AS from April 01, 2026, viewing it as a positive step for transparency. They plan to seek forbearance for the first year to ensure a calibrated transition. The Public Insurance Registry (PIR) was also highlighted as a key initiative expected to drive industry growth, penetration, and efficiency. Management noted that the industry's macroeconomic fundamentals are strong, providing comfort in absorbing external shocks, despite global uncertainties.