ICICI Lombard General Insurance Company Limited

General Insurance

Annual Returns

Cumulative Returns and Drawdowns



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Margined





AI Summary

asof: 2025-12-03

ICICI Lombard General Insurance (ICICIGI) Analysis

Period Analyzed: Q2 & H1 FY2026 (Apr-Sep 2025, reported Oct 2025). All figures on 1/n basis (IRDAI mandate from Oct 2024 for long-term products; impacts ~₹68 Cr GDPI downward).

Financial Snapshot (H1 FY2026)

Metric Value YoY Industry
GDPI ₹143.3 Bn -0.5% +7.3%
GDPI ex Crop/Mass Health - +3.5% +10.5%
PAT ₹15.7 Bn +22.9% -
ROAE 20.8% +50 bps -
CoR (ex CAT) 103.3% +110 bps 115.0%
Solvency 2.73x - >1.5x req.

Dividend: ₹6.50/share (vs ₹5.50 prior H1).

Headwinds

  • Subdued Growth: GDPI de-growth vs industry; Motor (+2.2%, share 10.4%) hit by pricing wars/competition (industry +7.6%). Commercial +6.5% (vs +14.2%). Crop de-growth from tenders.
  • Margin Pressure: CoR up to 104% (Motor OD LR 68.5%, Fire 65.8%); CAT losses ₹0.73 Bn.
  • 1/n Norm Impact: Lower reported GDPI/premium recognition; not fully comparable.
  • GST Demand: ₹47 Cr tax + ₹47 Cr penalty (FY19-23) from Bhopal CGST; ~30% of H1 PAT (appeal/writ planned, “no impact at this stage”).

Tailwinds

  • PAT/ROE Strength: +23% PAT driven by investments (₹25 Bn income, +13%; cap gains ₹6 Bn). ROAE 20.8% >> industry avg.
  • Retail Health Outperformance: +25% growth (share 3.7% from 3.2%; Sep >4%); claims settled 99.6% in 30 days.
  • GST Reforms Boost: Zero GST on health premiums (Sep volumes up); auto GST cuts aiding festive demand (Sep Motor +6.5%, new PC/TW +18%/8.5% > industry).
  • Operational Excellence: App 18.4 Mn downloads (GWP ₹2.1 Bn); NPS Health 72/Motor 66; differentiated service desks.

Growth Prospects

  • H2 Momentum: Reforms + festive tailwinds (Navratri PC/TW sales +35%); expect Motor recovery (OEM strength). Retail health to scale on affordability.
  • Industry Backdrop: +7-10% GDPI (ex crop/mass); multiline edge (Fire +27% Q2).
  • Medium-Term: Penetration low (0.6% GDP); reforms unlock ₹2.2-3.1 Tn stimulus. Target profitable growth (CoR ~103%, ROE 18-20%).
  • FY26 Outlook: GDPI 8-12% (mgmt optimistic); Retail health upward trajectory.

Key Risks

Risk Details Mitigation
Regulatory GST demand (₹94 Cr); 1/n norm volatility. Appeal/writ; conservative reserving.
Competition Motor pricing pressure (CoR 125% industry); share loss tactical. Portfolio shift (PC/TW up); underwriting discipline.
CAT/Claims Floods impacted Q2; historical low exposure but volatile. Reinsurance (A- rated); VAS/risk mgmt.
Investment Equity 14% portfolio; rate cuts. YTM 7.39%; duration 4.74 yrs; unrealized gains ₹16 Bn.
Execution Crop tenders; group health muted (microfinance slowdown). Diversified channels (1.47L agents); digital focus.

Overall: Resilient profitability amid growth moderation; reforms position for H2/FY27 acceleration. Stock likely supported by PAT beat/dividend, but watch GST resolution/Motor recovery. Buy/Hold on dips for long-term growth (CAGR 13-20% GWP/PAT historical).

   

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