ICICIGI - ICICI Lombard

📊 NSE: ICICIGI 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 7:51

💰 Financial Performance

Revenue Growth by Segment

Gross Direct Premium Income (GDPI) grew 8.3% to INR 26,833 Cr in FY2025 from INR 24,776 Cr in FY2024. Segment mix in FY2025: Motor (40.0%), Health, Travel & Personal Accident (28.6%), and Fire (11.8%). H1 FY2026 growth: Fire segment grew 15.3% YoY, Engineering grew 12.3%, while Marine Cargo and Liability de-grew by 5.4% and 1.7% respectively.

Profitability Margins

Profit After Tax (PAT) grew 30.7% to INR 2,508 Cr in FY2025 from INR 1,919 Cr in FY2024. Return on Equity (RoE) improved to 17.5% in FY2025 from 16.0% in FY2024. Combined ratio improved to 102.8% in FY2025 from 103.3% in FY2024, indicating better underwriting efficiency.

EBITDA Margin

Core profitability is measured by the Combined Ratio, which stood at 102.8% in FY2025, a 50 bps improvement YoY. This ratio is significantly better than the industry average, which was over 12 percentage points higher in Q1 FY2026.

Credit Rating & Borrowing

Issuer Rating reaffirmed at [ICRA]AAA (Stable). The company has no outstanding sub-debt as of March 31, 2025, and maintains a strong solvency ratio of 2.69x, well above the regulatory requirement of 1.50x.

⚙️ Operational Drivers

Raw Materials

Not applicable for insurance services. Primary cost drivers are Net Claims Paid (INR 12,487 Cr maximum in recent years) and distribution commissions.

Import Sources

Not applicable for insurance services.

Key Suppliers

Key distribution partners include ICICI Bank (Promoter) and various brokers who contributed 51.9% of GDPI in FY2025.

Capacity Expansion

Current infrastructure includes 316 branches and 16,034 employees as of June 30, 2024. The company leverages ICICI Group's 6,983 branches and 16,285 ATMs for distribution.

Raw Material Costs

Claims and commissions are the primary operational costs. The company reported underwriting losses but offset them with investment income of INR 25.38 billion in H1 FY2026, up 12.7% YoY.

Manufacturing Efficiency

Underwriting efficiency is reflected in a Combined Ratio of 102.8% in FY2025, which is superior to the industry average, driven by prudent risk selection.

Logistics & Distribution

Distribution is diversified: Brokers (51.9%), Direct (17.4%), and Bancassurance (7.0%) in FY2025.

📈 Strategic Growth

Expected Growth Rate

17.80%

Growth Strategy

Growth is driven by a multi-channel distribution strategy across agency, broking, and bancassurance. The company is focusing on 'preferred lines' like Fire, which grew 27.3% in Q2 FY2026, and Engineering (12.3% growth in H1 FY2026) while maintaining pricing discipline despite high competition.

Products & Services

Insurance policies covering Motor, Health, Travel, Personal Accident, Fire, Engineering, Marine Cargo, Liability, and Crop/Weather.

Brand Portfolio

ICICI Lombard.

Market Expansion

Expansion is targeted through wider distribution in agency and bancassurance channels, particularly leveraging the ICICI Bank network.

Market Share & Ranking

Largest private general insurer in India with a 9.0% market share in FY2025, up from 8.9% in FY2024.

Strategic Alliances

Promoted by ICICI Bank Limited, which holds a 51.60% equity stake as of March 31, 2025.

🌍 External Factors

Industry Trends

The general insurance industry grew 7.3% in H1 FY2026. There is a notable shift toward Health and Personal Accident segments, which now account for 28.6% of ICICIGI's mix compared to 21.6% in FY2021.

Competitive Landscape

Faces high competition in commercial lines and motor segments from both public and private insurers.

Competitive Moat

Moat is built on the 'ICICI' brand name, parentage support from ICICI Bank, and scale as the largest private player. These advantages are sustainable due to the high capital requirements and regulatory barriers in the insurance sector.

Macro Economic Sensitivity

Sensitive to interest rate changes as investment income (INR 2,538 Cr in H1 FY2026) is a major contributor to RoE.

Consumer Behavior

Increasing demand for health and travel insurance products, with the segment's share of GDPI rising to 28.6% in FY2025.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by IRDAI; must maintain a minimum solvency ratio of 1.50x (ICICIGI is at 2.69x). Health products are accounted for on a 1/n basis as mandated by IRDAI.