ICICI Lombard General Insurance Ltd – ₹2,675 Cr Profits, 36 Mn Policies, and a Combined Ratio That Needs Gym
1. At a Glance
ICICI Lombard is India’s largest private-sector non-life insurer with a 9.4% market share. Translation: if your car got scratched, your luggage got lost, or your uncle’s factory caught fire, there’s a decent chance they’re footing the bill. With ₹24,755 Cr in revenues, ₹2,675 Cr PAT, and 36 Mn policies issued in FY24, the company is a cash-generating beast—but with a combined ratio of 103.2%, it sometimes pays out more than it collects. Basically, it’s like running a dhaba that serves more free papad than it sells thalis.
2. Introduction
Insurance is the only business where the customer buys a product hoping never to use it. ICICI Lombard, set up in 2001 as a JV between ICICI Bank and Fairfax, has turned this paradox into profits. Fairfax exited in 2019 with a tidy ₹2,600 Cr, leaving ICICI Bank as the big boss with 51.5% stake.
Today, ICICI Lombard is the biggest private general insurer, operating across health, motor, fire, marine, crop, and liability. It’s everywhere from a village panchayat crop policy to corporate liability coverage for CEOs who say dumb things on Twitter.
The stock though—trading at ₹1,840 with a P/E of 34.2—has been more volatile than LIC IPO day. One-year return: -18%. Three-year return: +14%. Investors are still figuring out if this is HDFC Bank in the making or just IRDAI’s favourite compliant child.
Question to readers: would you pay premium multiples for a company that literally makes money when you have bad luck?
3. Business Model – WTF Do They Even Do?
ICICI Lombard sells risk cover for literally everything:
Health, Travel & PA (30%) – From your Delhi hospital bills to your Bangkok misadventures. Fastest growing segment.
Motor OD (17%) + Motor TP (16%) – Still core, but share dropping as EV adoption and competition heat up.
Fire (13%) – Corporate factories and warehouses. Smoky business, but high-margin.
Distribution? 1.28 lakh agents, 217 corporates, 13k garages, 10k hospitals. Even your neighbourhood chaiwala might be selling ICICI Lombard policies on the side.
4. Financials Overview
Metric
Latest Qtr (Jun ’25)
YoY (Jun ’24)
QoQ (Mar ’25)
YoY %
QoQ %
Revenue
6,396
5,601
6,051
14.2%
5.7%
PAT
747
580
510
28.7%
46.5%
EPS (₹)
15.0
11.8
10.3
27.1%
46.0%
Commentary: Revenue grew in double digits. PAT jumped like Sensex on Budget Day. Annualised EPS = ₹60 → P/E = 30.7. Slightly cheaper than headline 34x, but still premium.
5. Valuation – Fair Value Range Only
P/E Method EPS (annualised) = ₹60. Industry P/E = ~39. Fair range = 60 × (28–35) = ₹1,680 – ₹2,100.
EV/EBITDA EV = ₹90,830 Cr. EBITDA (TTM) = ₹3,492 Cr. Current EV/EBITDA = 26. Industry norm ~18–22. Fair EV = ₹62k–₹77k Cr → per share = ₹1,150 – ₹1,440.
