• Q4 FY26 GDPI growth of 18.2% vs industry growth of 10.9%, with H2 FY26 growth at 15.7% vs industry 11.2%
• Retail health business grew 51.1% in FY26 vs industry growth of 19.9%, with market share improving from 3.3% to 4.1%
• Motor segment growth of 15% in Q4 FY26 vs industry growth of 10%, with H2 growth at 12% vs industry 10.5%
• IL TakeCare app crossed 21 million downloads as of March 31, 2026, with GWP earned of INR 5,170 million vs INR 2,232 million in FY25
• Retention improved by 5 percentage points across the company, driven by digital initiatives and IL-onefourth platform with 10,000+ users
• Advanced premium in motor insurance increased by over 15% in FY26, with market share in advanced premium (excluding motor) at 12.5% vs 9.6% in FY25
• Strong 10-year track record with average combined ratio of 102.9% vs industry 115.3%, average realized yield of 8.7%, and average ROE of 19.1% vs industry 4%
• Healthy solvency ratio of 2.67x as of March 31, 2026, well above regulatory requirements

ICICI Lombard reported a strong Q4 and FY26 performance with 18.2% growth in Q4 and 7% full-year growth in gross domestic premium. The company maintained its combined ratio at 103.4% (excluding wage code impact at 102.1%) while delivering 10.5% PAT growth to INR 27.72 billion and an ROE of 17.8%. Management expressed confidence in momentum carrying into FY27, particularly in retail health (51.1% growth) and motor segments, though competitive pressures persist in commercial lines.

ICICI Lombard reported gross domestic premium income of INR 224.38 billion for FY26, representing 7% growth (10.2% excluding crop and marshal). Q4 FY26 growth accelerated to 18.2%. Profit before tax grew 10.2% to INR 36.59 billion (11.8% excluding INR 550 million wage code impact). Profit after tax on a 1YN basis grew 10.5% to INR 27.72 billion (12.2% excluding wage code). Q4 PAT grew 7.3% to INR 5.47 billion. Combined ratio for FY26 was 103.4% on 1YN basis (102.1% excluding wage code) vs 102.8% in FY25. Investment income reached INR 47.42 billion vs INR 42.5 billion in FY25, with investment assets at INR 584.21 billion as of March 31, 2026. The company recognized an impairment of INR 490 million on equity portfolio due to market correction. ROE stood at 17.8% (18.1% excluding wage code) vs 19.1% in FY25. The Board proposed a final dividend of INR 7 per share, bringing total FY26 dividend to INR 13.5 per share vs INR 12.5 in FY25, representing approximately 25% of PAT.

Management demonstrated measured confidence, acknowledging strong Q4 and H2 momentum while being realistic about competitive pressures, particularly in commercial lines. CEO Sanjeev Mantri emphasized the company's disciplined approach to profitable growth over market share, highlighting their differentiated underwriting practices and distribution capabilities. The leadership team emphasized their 'One Eye, One Company' philosophy and showcased digital initiatives like IL-onefourth platform and IL TakeCare app as key enablers. CFO Gopal Balachandran stressed the importance of viewing performance over full-year periods rather than individual quarters, particularly for motor and crop segments. Management highlighted their 10-year track record of consistent performance (102.9% combined ratio, 19.1% ROE) as evidence of their ability to navigate cycles. On regulatory matters, they welcomed potential EOM tightening as it would level the playing field, and chose to seek forbearance for Ind AS transition to ensure calibrated implementation. The tone was pragmatic about external uncertainties (geopolitical tensions, competitive pressures) while confident in their operational execution and market positioning.

The company faces intensified competitive pressure in commercial lines, particularly in the fire segment during H2, with renewal pricing on April 1, 2026 reported at a discount to the previous year, suggesting Q1 FY27 challenges will continue. Motor third-party pricing remains under pressure with industry combined ratio at 128.1% for 9M FY26, though the company awaits much-needed rate hikes (last increase was five years ago, industry TP loss ratio at ~85%). Geopolitical tensions in West Asia have created volatility in energy prices and financial markets with potential spillover effects on the Indian economy. The company recognized INR 490 million in equity portfolio impairment due to market correction in Q4. Group health segment remains challenging with Q4 loss ratio at 98.1%, though showing improvement from 97.2% full-year FY25. Commercial vehicle segment profitability concerns persist despite growth acceleration. The transition to Ind AS reporting creates operational complexity, though the company opted for forbearance in the first year. Competitive intensity in pricing, particularly in commercial lines, led to the company losing 0.7-0.8 percentage points in market share in FY26. External demand uncertainties exist if the economy shifts toward savings rather than spending, potentially impacting motor sales. The company must balance growth aspirations with maintaining underwriting discipline in an increasingly competitive environment.

Revenue Outlook: Management expects momentum from Q3-Q4 FY26 to continue into Q1-Q2 FY27, with positive outlook on motor segment driven by continued GST rationalization benefits and new vehicle sales growth. Industry expected to deliver high single-digit growth in motor. Commercial lines outlook more cautious given competitive pressures, particularly in fire segment renewals.

Margin Outlook: Motor loss ratio guidance maintained at 65-67% range. Retail health loss ratio guidance at 65-70% range. No change to reserving philosophy or practices. Combined ratio expected to remain disciplined with focus on profitable growth over market share.

Key Targets:

• Maintain motor loss ratio within 65-67% range
• Continue retail health loss ratio within 65-70% range
• Improve retention rates across segments (already achieved 5 percentage point improvement in FY26)
• Expand IL TakeCare app adoption (currently 21 million downloads)
• Maintain solvency ratio with adequate buffers while balancing growth and shareholder returns
• Maintain dividend payout ratio around 25% of PAT

The Q&A session revealed analysts primarily focused on three themes: competitive dynamics across segments, sustainability of improved loss ratios particularly in motor TP and health, and growth outlook for FY27. Multiple questions probed the commercial lines competitive pressure and market share loss, with management candidly acknowledging intensified competition but emphasizing their differentiated capabilities and disciplined approach to profitable growth over market share. Analysts sought clarification on quarterly volatility in loss ratios, particularly the favorable Q4 motor TP and crop results, with management consistently redirecting focus to full-year metrics and reaffirming no changes to conservative reserving practices. Questions on excess solvency utilization reflected investor interest in capital allocation between growth, dividends, and regulatory buffers. Management responded with measured optimism, highlighting strong H2 momentum, digital initiatives, and retention improvements while being realistic about external uncertainties and competitive headwinds. The tone was balanced - acknowledging near-term challenges in commercial lines and motor TP pricing while confident in their execution capabilities, 10-year track record, and positioning for FY27. Analysts appeared satisfied with transparency on segment-level metrics (health retail vs group breakdown, motor components) and management's unwavering focus on underwriting discipline over aggressive growth.