ICICI Lombard General Insurance Company Ltd Q2FY26 | India’s Insurance Powerhouse Delivers ₹820 Cr Profit — But Tax Notices Keep Knocking Like Serial Claims Adjusters
ICICI Lombard — the titan of non-life insurance — reported yet another solid quarter, with Q2FY26 PAT at ₹820 crore (+18% YoY) and GDPI growth of 12%, holding its No. 1 spot among private general insurers with a 9.4% market share.
At ₹2,011 per share and a market cap of ₹1 lakh crore, it’s now officially the first Indian general insurer to breach that milestone. With ROE of 18.8%, combined ratio at 103.2%, and a solvency ratio of 265%, ICICI Lombard has the financial fitness of a marathoner — despite the occasional speed bump from GST and income-tax demands that could fill a small novel.
While peers like Star Health and Go Digit are busy fighting claims and losses, Lombard is busy printing underwriting profits — and witty disclaimers.
2. Introduction – From “Bank JV” to Market Behemoth
Started in 2001 as a joint venture between ICICI Bank and Fairfax Financial, ICICI Lombard was meant to be a niche private insurer. Two decades later, it has evolved into India’s largest non-life insurance company, covering everything from your car’s bumper to your company’s boardroom.
Fairfax exited in 2019 for ₹2,600 crore, leaving ICICI Bank with 51.5% ownership today — a promoter alignment that gives the insurer both scale and stability. The company commands leadership across multiple segments — fire (13%), engineering (17%), marine cargo (21%), and liability (19%).
Its secret sauce? Diversification, distribution depth, and digital dexterity — plus the kind of actuarial discipline that could make even Warren Buffett nod.
3. Business Segments – How the Money Flows
ICICI Lombard doesn’t just sell policies — it sells peace of mind in 12 formats. Here’s how the ₹25,477 crore of FY25 revenue was split:
Segment
H1 FY25 Mix
FY22 Mix
Trend
Health, Travel & PA
30%
22%
📈 Rising strongly (driven by retail health)
Motor OD
17%
23%
📉 Losing share to new-age underwriters
Motor TP
16%
23%
📉 Lower TP pricing
Fire
13%
16%
📉 Regulatory pricing pressure
Crop
9%
4%
📈 Gaining via state contracts
Marine
4%
3%
📈 Strong export insurance demand
Others
11%
9%
📈 Miscellaneous lines, liability, cyber cover
Interpretation: The shift is clear — Lombard is pivoting from cyclical motor-heavy lines toward health and corporate specialty insurance, which offer both volume and underwriting control.
4. Operational Metrics – The Insurance Engine Room
Metric
FY22
FY24
H1 FY25
Policies Issued (Mn)
29.3
36.2
—
Claims Settled (Mn)
2.3
2.9
—
GDPI (₹ Bn)
179.7
247.7
~140 (H1)
Combined Ratio
108.8%
104.7%
103.2%
Loss Ratio
75.1%
73.4%
72.6%
Solvency Ratio
246%
255%
265%
Commentary: Loss ratio down, combined ratio below 104%, solvency up — this is the golden trifecta of general insurance. Essentially, ICICI Lombard now earns ₹103 for every ₹100 of claim cost and expense, but makes up the difference (and more) via investment income.
5. Financial Highlights
Metric
Latest Qtr (Q2FY26)
YoY (Q2FY25)
QoQ (Q1FY26)
YoY %
QoQ %
Revenue
₹6,869 Cr
₹6,147 Cr
₹6,396 Cr
+11.8%
+7.4%
Operating Profit
₹1,044 Cr
₹940 Cr
₹981 Cr
+11%
+6.4%
PAT
₹820 Cr
₹694 Cr
₹747 Cr
+18%
+9.8%
EPS
₹16.47
₹14.03
₹15.04
+17%
+9.5%
OPM
15.2%
15.0%
15.3%
Flat
Flat
Summary: Lombard isn’t growing explosively — it’s growing sustainably. Margins hold, costs are contained, and the business continues compounding like a steady blue-chip should.
6. Valuation Discussion – Fair Value Range (Educational)
Method 1: P/E Approach
EPS (FY25): ₹56.4
Current P/E: 35.7x
Peer range: Star Health (49x), Go Digit (71x), GIC Re (8x), New India (26x) → Fair P/E range for Lombard: 33x–38x (premium justified for private leadership) → Fair Value Range: ₹1,860 – ₹2,145 per share
Method 2: EV/EBITDA
EV: ₹99,715 Cr
EBITDA (FY25): ₹3,596 Cr → EV/EBITDA = 27.7x (in line with premium peers) →
