“Regulatory and government reforms, particularly in the last quarter (Q3), have been supportive and reflecting positively at a sector level. At the industry level, growth has turned double-digit for the first time after a single-digit expansion in the first half (H1FY26),” he said, adding that while part of this includes some premium accrual impact from the 1/N effect of last year, the overall growth momentum is clearly improving.
“Historically, during such phases, ICICI Lombard has outperformed the industry, and we continue to expect an outperformance of 100-200 basis points at an aggregate level,” Balachandran said.
The company posted 13.3 per cent year-on-year (Y-o-Y) growth in the gross direct premium income (GDPI) to ₹7,041 crore in Q3FY26 on the back of revision in goods and service tax (GST) for insurance. Premium grew by 3.6 per cent Y-o-Y during April-December period of FY26 (9MFY26) to ₹21,372 crore.
In September, the GST on individual health and life insurance premiums was reduced to zero from 18 per cent. This has led to around 85 per cent Y-o-Y growth in retail health insurance premium. Also, motor insurance premium -- a segment where the insurer was cautious earlier -- has seen healthy growth due to strong growth in motor vehicles after GST relaxation in the segment.
Commission expense of the insurer saw an increase in the quarter reflecting the business mix which saw a higher share of retail.
According to Balachandran, Q3 typically has a higher retail mix, which carries higher acquisition costs. Growth in new vehicles also leads to higher commissions compared to older vehicles. Rapid growth in retail health has increased acquisition costs, which are expense upfront, while earnings accrue over time.
Going forward, the insurer said that it will focus on profitable growth opportunities across motor, health and commercial insurance.
 "ICICI Lombard CFO Gopal Balachandran said regulatory and government reforms were supportive in the third quarter")