ICICI Lombard Q1 FY26: PAT up 28.7%, GDPI 0.6% YoY

What ICICI Lombard reported for the June quarter

ICICI Lombard General Insurance Company Ltd reported a sharp year-on-year rise in profit for the quarter ended June 30 (Q1 FY26), even as premium growth remained muted versus the broader industry. Reuters reported on July 15 that the insurer posted a nearly 29% increase in profit for the first quarter, helped by premium momentum in retail health and motor insurance. The company’s profit after tax (PAT) for the quarter was Rs 747 crore (Rs 7.47 billion).

The quarter’s operating picture had mixed signals. The combined ratio, a key underwriting indicator, worsened to 102.9% in Q1 FY26 from 102.3% in Q1 FY25, implying that claims and expenses exceeded premium income from insurance operations. Despite that, the bottom line improved, with the company and other reports attributing the rise to higher investment income and improved underwriting performance in the Motor segment.

Key financial metrics: revenue, profit, and expenses

On a consolidated results view shared in the quarterly data table, total revenue for the quarter stood at Rs 6,083.36 crore. Net income (reported for the quarter) was Rs 747.08 crore, compared with Rs 546.56 crore in the immediately preceding quarter ended March 2026.

The same quarterly table showed operating income of Rs 682.59 crore versus Rs 1,588.52 crore in the March 2026 quarter. Total operating expense increased to Rs 5,400.77 crore from Rs 4,974.30 crore. Selling, general and administrative expenses were shown at Rs 430.85 crore for the June quarter versus Rs 39.25 crore in the March quarter.

While quarter-on-quarter comparisons can be influenced by seasonality and accounting classifications, the stated numbers point to higher reported expenses and lower operating income quarter-on-quarter, alongside a higher net profit.

Premium growth: GDPI trends versus industry

Gross Direct Premium Income (GDPI) in Q1 FY26 was Rs 7,735 crore (Rs 77.35 billion) compared with Rs 7,688 crore (Rs 76.88 billion) in Q1 FY25, a growth of 0.6%. The company noted this was below the industry’s 8.8% growth.

The company also disclosed an alternative growth view excluding the impact of the 1/n accounting norm. On that basis, GDPI grew 4.8% in Q1 FY26, while the industry grew 12.8%.

The broader context around GDPI reporting matters because the regulator revised premium recognition for long-term policies effective October 1, 2024. Under the 1/n approach, gross written premium for a long-term policy is recognised evenly over the policy duration.

Segment signals: motor and health were in focus

Reuters reported that premium revenue was supported by retail health and motor insurance. It also reported that motor insurance premiums rose 13.5% year-on-year, and that net premiums earned increased 14% to Rs 5,136 crore (Rs 51.36 billion) for the quarter.

The same Reuters report said ICICI Lombard saw increases of 44% in retail and 10% in corporate insurance premiums compared with the previous year. Separately, the company’s filings cited that the Motor insurance segment remained a major contributor with Rs 2,674.90 crore (Rs 2,67,490 lakh) in net premium earned, up 13.5% year-on-year.

Other narrative data in the provided text also pointed to mixed growth in commercial and group health lines, including mention that commercial lines growth lagged the industry and that group health faced a decline due to subdued growth in group benefits.

Underwriting and the combined ratio: still above 100%

The combined ratio was reported at 102.9% for Q1 FY26 compared to 102.3% in Q1 FY25. A combined ratio above 100% typically indicates underwriting losses, meaning the insurer paid out more in claims and expenses than it earned in premiums, before investment income.

This is consistent with the observation in the provided text that the company “loses some money on its basic insurance operations,” while investment income, including gains from equities, offsets that.

The underwriting outcome matters because it indicates whether profit growth is being driven by core insurance performance or by investment returns. In this quarter, the reported improvement in profit coincided with a combined ratio that deteriorated slightly year-on-year.

Investment income, capital gains, and profitability

For Q1 FY26, profit before tax (PBT) rose 28.4% to Rs 994 crore (Rs 9.94 billion) from Rs 774 crore (Rs 7.74 billion) in Q1 FY25. Capital gains were Rs 380 crore (Rs 3.80 billion) in Q1 FY26 versus Rs 284 crore (Rs 2.84 billion) in Q1 FY25.

Consequently, PAT grew 28.7% to Rs 747 crore from Rs 580 crore in the year-ago quarter. Return on Average Equity (ROAE) improved to 20.5% in Q1 FY26 from 19.1% in Q1 FY25.

A separate results summary in the text also reported net profit after tax of Rs 746.6 crore, up 47.6% year-on-year from Rs 505.9 crore in Q1 FY25, and linked the rise to higher investment income and improved underwriting performance, particularly in Motor.

Snapshot of reported financials (quarter ended June)

Market context: 1/n norms and industry growth trends

The regulatory change to premium recognition for long-term policies, effective October 1, 2024, is a recurring theme in the company’s disclosures. Under 1/n, premium is allocated more evenly over the policy period, and any excess collected is treated as premium deposit or advance premium. This reduces headline GDPI growth rates for certain long-term products compared with older recognition approaches.

The industry backdrop in the text highlighted that the non-life insurance industry delivered GDPI growth of 6.2% for FY2025 versus 12.8% for FY2024, and that motor growth slowed due to muted vehicle sales and continued pricing pressure. Health remained the largest contributor to the industry product mix, followed by motor.

Stock reference and investor-facing items

The provided text noted that as of market close on July 14, 2025 at 3:56 pm, ICICI Lombard closed at Rs 2,019.70. The text also included shareholder information on unpaid and unclaimed dividends, including that details are available on the company’s investor relations website and that claims can be filed using IEPF Form IEPF-5 through the IEPF portal.

What to watch from here

The quarter’s headline is clear: profit growth remained strong, but core underwriting metrics were still pressured, with the combined ratio above 100%. Premium growth at the headline GDPI level was modest versus the industry, and the company’s disclosures repeatedly separate performance “excluding the impact of 1/n accounting norm,” suggesting that reporting comparability will remain a key discussion point.

Investors will likely track whether combined ratio trends improve in subsequent quarters, how premium growth compares on both 1/n and non-1/n views, and whether investment income continues to provide the same level of support to the bottom line.