ICICI Lombard General Insurance's Q3 net profit falls 9% to ₹659 crore

ICICI Lombard General Insurance, the largest private sector general insurer, saw a 9.04 per cent year-on-year (YoY) drop in net profit to Rs 658.88 crore in the October-December quarter of FY26 (Q3 FY26) due to an increase in expenses. Profit was down from Rs 724.38 crore in Q3 FY25.

 

The expenses of the insurer were up by 16.19 per cent YoY to Rs 6,039.06 crore in the quarter, while commissions rose by 15.5 per cent YoY to Rs 1,343.1 crore.

 

Also, according to the new labour codes of the Government of India, the insurer has estimated an incremental gratuity expense of Rs 53.06 crore “as past service cost during the quarter and nine months ended December 31, 2025, resulting in a corresponding reduction in profit and increase in gratuity obligation.” As of December 31, 2025, unrecognised past service cost in respect of gratuity obligation amounts to Rs 16.93 crore.

 

The gross written premium of the insurer was up by 14.8 per cent YoY to Rs 7,432.98 crore from Rs 6,474.45 crore in Q3 FY25. Net premium income also increased by 12.7 per cent YoY to Rs 5,685.3 crore. Investment income was up by 8.23 per cent YoY to Rs 909.01 crore.

 

The incurred claims ratio of the company was at 68.70 per cent in Q3 FY26 as against 65.80 per cent in Q3 FY25, and the combined ratio of ICICI Lombard also worsened to 104.50 per cent from 102.70 per cent in the year-ago period.

 

At the same time, the solvency ratio of the insurer stood at 269 per cent, compared with the regulatory mandate of 150 per cent. It stood at 237 per cent in the year-ago period.