1. Opening Hook
While Twitter was busy debating whether insurance stocks are “dead money,” ICICI Lombard quietly dropped a Q3 call that confused everyone equally. Retail Health exploded like a startup pitch deck, Motor stayed disciplined like a boring topper, and profits… well, profits decided to take a power nap.
GDP is booming, vehicles are flying off showroom floors, GST got trimmed, and insurers should be partying. Instead, Lombard showed up with underwriting discipline, regulatory whiplash, and a one-time wage code slap. Classic insurance vibes.
If you thought this was a boring insurer concall, think again. There’s market share drama, margin math gymnastics (n vs 1/n), and management repeatedly reminding analysts to “stop overthinking quarter-on-quarter.”
Read on. It actually gets interesting once the spreadsheets stop screaming.
2. At a Glance
- GDPI up 13.3% (Q3): Lombard outran the industry without chasing dumb premiums.
- Retail Health up 85.8%: New customers came in droves, wallets open, fear activated.
- PAT flat YoY (Q3): Wage code + CAT losses said “not today.”
- Combined Ratio at 104.5% (1/n): Still cleaner than industry’s 119% mess.
- ROE dipped to 16.5%: Temporary pain, management swears it’s not a trend.
3. Management’s Key Commentary
“Retail Health grew 85.8% in Q3.”
(Yes,
we know it looks insane. No, we don’t expect this forever.) 😏
“Growth was driven by new-to-industry customers.”
(People finally realized hospital bills are not optional.)
“We will not chase Motor growth at the cost of ROE.”
(Unlike some competitors with adrenaline issues.)
“Combined ratio discipline remains intact despite competition.”
(Translation: others are bleeding; we’re bruised.)
“1/n accounting should not be confused with economic value.”
(Please stop asking us the same question again.) 😑
“Health loss ratios are holding within guided range.”
(Shockingly, math is math.)
4. Numbers Decoded
| Metric | Q3FY26 | YoY Read |
|---|---|---|
| GDPI | ₹70.4 bn | +13.3% |
| Retail Health GDPI | ₹20.4 bn | +85.8% |
| Combined Ratio (1/n) | 104.5% | Worsened |
| PAT | ₹6.6 bn | -9.1% |
| ROE | 16.5% | Down |
Decoded: Growth is back, margins are stable-ish, profits took a regulatory hit, not an operational one.
5. Analyst Questions (Decoded)
- Labor Code Impact?
₹55 cr one-time pain, ₹17 cr
