1. At a Glance
India’s largest private general insurer, ICICI Lombard, is the closest thing to a blue-chip in the chaotic world of insurance. With a steady ROE of ~19%, growing premiums, and an OPM finally showing signs of life, it’s not just insuring risk—it’s printing returns.
2. Introduction with Hook
Imagine a superhero who never saves the world but makes a fortune when things go wrong. Fires? Floods? You crashed your friend’s dad’s Mercedes? ICICI Lombard thrives when your plans don’t.
- ₹99,427 Cr market cap makes it the titan of Indian general insurance.
- Q1 FY26 Net Profit: ₹747 Cr. Up from ₹694 Cr YOY, despite underwriting pressures.
- 9.4% market share in non-life insurance, with sector domination in marine, fire, and liability.
3. Business Model (WTF Do They Even Do?)
ICICI Lombard is a general insurer, meaning it handles:
- Motor insurance (think cars, bikes, and road rage consequences)
- Health insurance (a pandemic-proof vertical)
- Corporate insurance (fire, liability, marine)
- Travel insurance (for when you’re stranded in Istanbul or your baggage heads to Sydney instead)
They earn by:
- Charging premiums upfront
- Investing the float in bonds and equities
- Hoping fewer people claim than they collect
Distribution:
- 50% via Brokers & Bancassurance (mostly through ICICI Bank)
- Rest via Agents, Online, and Corporate tie-ups
4. Financials Overview
| Particulars (₹ Cr) | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Gross Premium | 16,026 | 17,876 | 20,572 | 23,961 |
| Net Profit | 1,271 | 1,729 | 1,919 | 2,508 |
| OPM % | 6% | 7% | 13% | 14% |
| ROE % | 18% | 19% | 18.8% | 18.8% |
Growth is healthy, and OPM doubled in two years. Still, being an insurer, profits can swing wildly with underwriting results, natural disasters, or a single tweet from Elon Musk about Mars insurance.
5. Valuation
Let’s not act like we can predict claims ratio, but using basic metrics:
- Trailing P/E: ~40x
- Book Value: ₹292
- Price/BV: ~6.85x
We apply:
Method 1: P/E Method (Sustainable EPS ~₹50–52)
- FV Range = ₹1,750 to ₹2,400 (P/E 35x to 46x)
Method 2: P/BV Method (ROE = 19%)
- Using 3.5x to 5x P/BV = ₹1,022 to ₹1,460
Blended Fair Value Range: ₹1,800–₹2,200
Anything above ₹2,300 = premium territory. Below ₹1,800? Insure your luck. Buy ICICI Lombard.
6. What’s Cooking – News, Triggers, Drama
- Digitization Push: Expanding retail health and motor via app.
- New biz like cyber insurance rising fast.
- Q1 FY26 Earnings: ₹747 Cr net, ₹8,052 Cr GDPI.
- Dividend of ₹7/share declared. Happy shareholders.
- Change in Director: Suresh Kumar exited (age 75 cap). No boardroom soap opera.
- Risk: High motor claims in Q2 rains/floods may dent margins.
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 496 |
| Reserves | 13,989 |
| Borrowings | 0 |
| Other Liabilities | 54,535 |
| Total Liabilities | 69,020 |
| Investments | 53,508 |
| Fixed Assets | 728 |
Key Points:
- Debt-free.
- ₹53K Cr sitting in investments = float that mints money.
- Huge liabilities = premiums collected in advance. It’s not a bug; it’s the feature.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹2,290 Cr | ₹(1,685) Cr | ₹(695) Cr | ₹(90) Cr |
| FY24 | ₹2,407 Cr | ₹(1,921) Cr | ₹(355) Cr | ₹131 Cr |
| FY25 | ₹1,147 Cr | ₹(1,137) Cr | ₹(257) Cr | ₹(247) Cr |
- Free cash flow engine.
- Investing outflows = float getting deployed.
- Negative CFF = dividends, no debt.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 21% | 23% | 25% |
| ROE | 18% | 19% | 19% |
| EPS | ₹35.2 | ₹38.9 | ₹50.6 |
| Dividend Payout | 28% | 28% | 25% |
| P/E | ~40x | – | – |
Verdict: Solid returns, consistent payout, and no over-leverage—Bajaj Finance of Insurance?
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | Expenses | OPM % | Net Profit | EPS |
|---|---|---|---|---|---|
| FY22 | 16,026 | 15,010 | 6% | 1,271 | ₹25.9 |
| FY23 | 17,876 | 16,612 | 7% | 1,729 | ₹35.2 |
| FY24 | 20,572 | 17,918 | 13% | 1,919 | ₹38.9 |
| FY25 | 23,961 | 20,554 | 14% | 2,508 | ₹50.6 |
Profitability got a dose of steroids post-COVID as claim ratios normalized.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROE | OPM | GDPI (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|---|---|---|
| ICICI Lombard | 2,003 | 39.6 | 18.8% | 14% | 23,961 | 2,508 |
| General Insurance Corp | 385 | 9.1 | 12.7% | 17.7% | 49,617 | 7,432 |
| Go Digit | 354 | 76.7 | 11.7% | 1.1% | 9,371 | 425 |
| Star Health | 428 | 39.0 | 9.6% | 5.3% | 16,101 | 646 |
Takeaway:
ICICI Lombard = Most expensive, but most consistent.
Go Digit = High growth, but LOL at profitability.
GIC = PSU discount, but massive profits.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 51.55% |
| FIIs | 23.68% |
| DIIs | 17.74% |
| Public | 6.93% |
- Promoter holding increased since FY24 – rare and bullish
- Public float tight = lower liquidity, more stability
13. EduInvesting Verdict™
ICICI Lombard is like that one boring but rich uncle—zero drama, tons of money, always pays on time. It’s not a multibagger rocket ship, but a sleep-well-at-night compounding machine.
If you’re into insurance stocks with actual insurance against downside risk (debt-free, 19% ROE, steady premium growth), ICICI Lombard is as close to bulletproof as they come.
Just don’t expect it to triple in 12 months—unless people start insuring NFTs again.
Metadata
– Written by EduInvesting Research Desk | July 15, 2025
– Tags: ICICI Lombard, Financials, Q1FY26, General Insurance, Blue-Chip Stocks, ROE Kings, Float Businesses
