ICICI Lombard Q2 Results – Net Profit Jumps 18.1% to Rs. 820 Crore; Interim Dividend Rs. 6.50 per Share

ICICI Lombard General Insurance Company has reported a strong set of numbers for the quarter ended September 30, 2025. The company’s net profit rose 18.1% YoY to Rs. 820 crore in Q2 FY2026, supported by higher investment income and stable underwriting performance. The Board has declared an interim dividend of Rs. 6.50 per share, compared to Rs. 5.50 per share last year.

Key Highlights (Q2 & H1 FY2026)

• Accounting Update:
  From October 1, 2024, long-term products are accounted on a 1/n basis as per IRDAI mandate, making current figures not directly comparable with previous periods.

• Premium Income (GDPI):

  • Gross Direct Premium Income (GDPI) stood at Rs. 65,960 crore in Q2 FY2026, slightly lower than Rs. 67,210 crore a year ago (down 1.9%).

  • For H1 FY2026, GDPI was Rs. 1,43,310 crore versus Rs. 1,44,090 crore in H1 FY2025 (down 0.5%).

  • Excluding the accounting change, GDPI grew 4.2% YoY in H1 FY2026 versus industry growth of 11.3%.

  • Excluding crop and mass health segments, GDPI growth was 3.5%, against the industry’s 10.5%.

• Combined Ratio:

  • The company reported a combined ratio of 105.1% in Q2 FY2026, compared to 104.5% last year.

  • For H1 FY2026, the ratio stood at 104.0%, up slightly from 103.2% in the previous year.

  • Excluding catastrophe (CAT) losses, the adjusted combined ratio was 103.8% in Q2 and 103.3% in H1.

• Profit Growth:

  • Profit Before Tax (PBT) rose 17.2% YoY to Rs. 1,077 crore in Q2 FY2026.

  • For H1 FY2026, PBT increased 22.3% to Rs. 2,071 crore.

  • Profit After Tax (PAT) stood at Rs. 820 crore in Q2 (up 18.1%) and Rs. 1,567 crore in H1 (up 22.9%).

• Capital Gains:

  • Capital gains were Rs. 236 crore in Q2 FY2026, almost flat compared to Rs. 237 crore last year.

  • For H1 FY2026, capital gains were Rs. 616 crore, higher than Rs. 521 crore in the previous year.

• Return Ratios & Solvency:

  • Return on Average Equity (ROAE) stood at 21.4% in Q2 FY2026 versus 21.8% last year.

  • For H1 FY2026, ROAE was 20.8%, slightly higher than 20.3% in H1 FY2025.

  • Solvency Ratio improved to 2.73x as of September 30, 2025, well above the regulatory requirement of 1.50x.

Chanakya View:

ICICI Lombard continues to deliver consistent profitability and strong solvency despite regulatory changes and subdued premium growth. Its disciplined underwriting, robust investment income, and healthy return ratios reaffirm its leadership among private general insurers. The stock remains a steady compounder in the insurance space.