ICICI Lombard General Insurance Company Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript ICICI Lombard General Insurance Company Ltd filed with BSE on 20 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
ICICI Lombard reported FY2026 Gross Direct Premium Income growth of 7.0%, with Profit After Tax on a 1/n basis rising 10.5% to Rs 27.72 billion. Management described elevated competitive intensity and pricing pressure in Commercial Lines and continued industry-wide stress on Motor combined ratios, while highlighting strong growth in Retail Health and digital initiatives such as IL OneForce and IL TakeCare. The company also discussed its planned approach to transitioning to Ind AS accounting, including seeking forbearance for the first year.
Numbers mentioned
Gross Direct Premium Income growth: 7.0% (FY2026)
p. 5
“The Company reported a growth of 7.0% in Gross Direct Premium Income (GDPI), for FY2026 compared to the industry growth of 9.2% for the same period.”
Sanjeev Mantri, page 5 of the filed PDF · View the filing
Profit After Tax (1/n basis): Rs 27.72 billion (FY2026)
p. 11
“Consequently, Profit After Tax, on a 1/n basis, grew by 10.5% to ₹ 27.72 billion in FY2026 as against ₹ 25.08 billion in FY2025.”
Gopal Balachandran, page 11 of the filed PDF · View the filing
Profit Before Tax: Rs 36.59 billion (FY2026)
p. 11
“Our Profit Before Tax grew by 10.2% to ₹ 36.59 billion in FY 2026 as against ₹ 33.21 billion in FY2025.”
Gopal Balachandran, page 11 of the filed PDF · View the filing
Combined Ratio (1/n basis): 103.4% (FY2026)
p. 10
“Our Combined ratio, on a 1/n basis, for FY2026 was 103.4% as against 102.8% in FY2025.”
Gopal Balachandran, page 10 of the filed PDF · View the filing
Return on Average Equity: 17.8% (FY2026)
p. 12
“Our ROAE was at 17.8% in FY2026 as against 19.1% in FY2025.”
Gopal Balachandran, page 12 of the filed PDF · View the filing
Solvency ratio: 2.67x (as at March 31, 2026)
p. 12
“Solvency ratio was at 2.67x at March 31, 2026, as against 2.69x as at December 31, 2025, which continued to be higher than the minimum regulatory requirement of 1.50x.”
Gopal Balachandran, page 12 of the filed PDF · View the filing
Investment income: Rs 47.42 billion (FY2026)
p. 10
“Investment income was at ₹ 47.42 billion in FY2026 as against ₹ 42.50 billion in FY2025.”
Gopal Balachandran, page 10 of the filed PDF · View the filing
Retail Health growth: 51.1% (FY2026)
p. 6
“Our Retail Health business, continued to demonstrate strong growth of 51.1% for FY2026, significantly outpacing the industry growth of 19.9% in the same period.”
Sanjeev Mantri, page 6 of the filed PDF · View the filing
Final dividend per share: Rs 7.00 (FY2026)
p. 12
“The Board of Directors of the Company has proposed a final dividend of ₹ 7.00 per share for FY2026.”
Gopal Balachandran, page 12 of the filed PDF · View the filing
Equity investment impairment: Rs 0.49 billion (Q4 FY2026)
p. 10
“During the quarter under review, the Company has recognized an impairment on its equity investments of ₹ 0.49 billion in Q4 FY2026 vs ₹ - 0.03 billion in FY2025, driven by the prevailing market correction.”
Gopal Balachandran, page 10 of the filed PDF · View the filing
Retail indemnity loss ratio (full year): 64.6% (FY2026)
p. 19
“On the retail indemnity, full year last year was 67.9%. This year, full year is at about 64.6%.”
Gopal Balachandran, page 19 of the filed PDF · View the filing
Employer-employee book loss ratio (full year): 91.9% (FY2026)
p. 19
“And this year, full year, the employer-employee book loss ratio stands at about 91.9%.”
Gopal Balachandran, page 19 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Motor combined loss ratio range — 65% to 67%
stated firmly by Gopal Balachandran
p. 13
“I think the range that we are comfortable on Motor is between 65% to 67%.”
Gopal Balachandran, page 13 of the filed PDF · View the filing
Retail indemnity loss ratio range — 65% to 70%
stated firmly by Gopal Balachandran
p. 19
“Again, on the indemnity book, I think the range that we have spoken about is between 65% to 70%.”
Gopal Balachandran, page 19 of the filed PDF · View the filing
Combined ratio decline upon Ind AS adoption — 300 to 400-450 basis points · year of adoption
stated conditionally by Sanjeev Mantri
p. 16
“we have always said in the past also, that the year of adoption, there would be a significant decline in combined ratio. It can be in the range of 300 basis to maybe 400-450 basis point.”
Sanjeev Mantri, page 16 of the filed PDF · View the filing
Motor segment growth vs industry FY27 — FY2027
stated as an aspiration by Sanjeev Mantri
p. 25
“We do expect a higher single-digit growth at the industry level. And if that happens, it would be, again, good for us.”
Sanjeev Mantri, page 25 of the filed PDF · View the filing
Q1/Q2 FY27 growth momentum — Q1 and Q2 FY2027
stated conditionally by Sanjeev Mantri
p. 25
“we are very confident of moving into the quarter one and quarter two on a positive note overall, as things stand.”
Sanjeev Mantri, page 25 of the filed PDF · View the filing
Dividend payout ratio — roughly about 25% of PAT
stated firmly by Gopal Balachandran
p. 19
“On an average, I think what we have been able to distribute is roughly about 25% of our PAT.”
Gopal Balachandran, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said competitive intensity in Commercial Lines has intensified but reinsurance capacity has helped offset it, and Motor remains stressed at an industry level while the company maintains disciplined underwriting.
Answered by Sanjeev Mantri
Asked by Supratim Datta: How is the competitive environment evolving across Commercial and Motor lines, and has the EOM guideline helped?
p. 16
“Yes, it has intensified on Commercial Line of business. At the same time, the capacity overall on the reinsurance side was very high available and we have been able to see to some extent is getting negated.”
Sanjeev Mantri, page 16 of the filed PDF · View the filing
Management explained that crop premiums are booked conservatively at near 100% loss ratio assumption, and as actual experience plays out favorably it gets reflected as a positive adjustment in later quarters.
Answered by Gopal Balachandran
Asked by Supratim Datta: Why was the crop loss ratio negative this quarter?
p. 14
“we obviously follow a very, very conservative approach of providing for almost 100% loss ratio at the time of writing the risk. And as the actual experiences play out, obviously, to that extent, in case if you see some a positive change, then to that extent, that gets reflected again in the given quarter.”
Gopal Balachandran, page 14 of the filed PDF · View the filing
Management said solvency will be used for a mix of growth funding and shareholder rewards, guided by their dividend policy of distributing around 25% of PAT.
Answered by Gopal Balachandran
Asked by Prayesh Jain: Given high solvency, will the company use it for higher dividends or growth?
p. 19
“it obviously will be a continued combination of both rewarding the shareholders appropriately and at the same time making sure that we are able to use the capital for growth.”
Gopal Balachandran, page 19 of the filed PDF · View the filing
Management said the industry-wide Motor TP hike is overdue given elevated loss ratios but is outside their control, while the company continues to manage its own portfolio.
Answered by Sanjeev Mantri
Asked by Prayesh Jain: Is a Motor TP price hike likely given elevated industry loss ratios?
p. 21
“We remain desirous of the fact that, yes, the TP hike for the industry is overdue and sooner than later, that should play out. But we can only control what is in our hand.”
Sanjeev Mantri, page 21 of the filed PDF · View the filing
Management said they will remain selective rather than chase market share, and cautioned that overall growth trajectory depends on broader market and macro conditions.
Answered by Sanjeev Mantri
Asked by Sanket Godha: Will the company claw back Commercial Lines market share in a softer market, and is 16% H2 growth sustainable?
p. 25
“There is so much happening all around that how do we predict that? But yes, Gopal mentioned that very briefly, we are very confident of moving into the quarter one and quarter two on a positive note overall, as things stand.”
Sanjeev Mantri, page 25 of the filed PDF · View the filing
Management confirmed the impairment related to equity investments under their diminution policy following market conditions in Q4.
Answered by Gopal Balachandran
Asked by Avinash Singh: What drove the Rs 49 crore investment impairment charge?
p. 28
“All of this ₹ 49 crores is with respect to the policy on diminution in the value of equity investments.”
Gopal Balachandran, page 28 of the filed PDF · View the filing
Management attributed the acceleration to strong new vehicle sales and improved retention rates, and expressed optimism the trend would continue but flagged macro uncertainty.
Answered by Gopal Balachandran
Asked by Nidhesh: What drove the acceleration in Motor growth in H2, and will it continue in FY27?
p. 26
“we have seen an improvement in our overall retention numbers go up by almost about 5%.”
Gopal Balachandran, page 26 of the filed PDF · View the filing
Management said uniform tightening of commission rules across the industry would benefit the company since it already operates within expense-of-management limits.
Answered by Sanjeev Mantri
Asked by Nischint Chawathe: How would tighter commission regulations affect the industry and the company?
p. 30
“Any tightening on a uniform basis across the industry would place ICICI Lombard at a significant advantage because we have remained within the limits of expense of management and if others fall in place, we can only see better time ahead for us as an industry.”
Sanjeev Mantri, page 30 of the filed PDF · View the filing
Risks flagged
Geopolitical conflict and global uncertainty affecting energy prices and financial markets
p. 3
“The ongoing conflict in West Asia has heightened global economic uncertainty, leading to volatility in energy prices and financial markets.”
Sanjeev Mantri, page 3 of the filed PDF · View the filing
Elevated competitive intensity and pricing pressure in Commercial Fire segment
p. 5
“the business witnessed elevated levels of competitive intensity & pricing pressure especially in the Fire segment in the second half of the year, leading to muted growth.”
Sanjeev Mantri, page 5 of the filed PDF · View the filing
Elevated Motor industry combined ratio due to pricing pressure
p. 5
“Due to pricing pressure, Combined Ratio for the Motor Line of Business continues to remain elevated at 128.1% for 9M FY2026 vis-à-vis 123.8% for the period ended 9M FY2025.”
Sanjeev Mantri, page 5 of the filed PDF · View the filing
Equity market correction leading to investment impairment and solvency impact
p. 10
“the Company has recognized an impairment on its equity investments of ₹ 0.49 billion in Q4 FY2026 vs ₹ - 0.03 billion in FY2025, driven by the prevailing market correction.”
Gopal Balachandran, page 10 of the filed PDF · View the filing
Mark to market losses on equity portfolio impacting solvency
p. 12
“The solvency was impacted by 14 basis points, as an outcome of the Mark to Market losses experienced on the equity portfolio as at March 31,2026.”
Gopal Balachandran, page 12 of the filed PDF · View the filing
Elevated industry Motor TP loss ratio
p. 20
“At the loss ratio, at the industry level, as far as Motor TP is concerned, is at around 85% and thereabouts, which is significantly elevated.”
Sanjeev Mantri, page 20 of the filed PDF · View the filing
Potential slowdown in auto sales if consumer spending shifts to savings
p. 27
“if there is a challenge on the energy, if the Indian mentality moves into the saving part of it rather than spending, the Motor sales or auto sales, which probably all of you are well aware of it actually ends up getting really muted.”
Sanjeev Mantri, page 27 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.