ICICI Lombard General Insurance, India’s largest private sector general insurer, disclosed a 9.04% decrease in its net profit for the October–December quarter of FY26. The company’s profit dipped to Rs 658.88 crore in Q3 FY26 from Rs 724.38 crore in the same period last financial year (Q3 FY25), as per its stock exchange filing.
During the quarter, total expenses surged by 16.19% year-on-year to Rs 6,039.06 crore, while commission payouts climbed by 15.5% to Rs 1,343.1 crore. Despite robust business growth, the higher cost burden impacted the insurer’s bottom line.
Under the new labor codes introduced by the Government, ICICI Lombard estimated an extra gratuity expense of Rs 53.06 crore as past service cost for the quarter and the nine months ended December 31, 2025. This adjustment resulted in a corresponding profit reduction and an increase in gratuity obligations.
The company’s gross written premium saw a 14.8% year-on-year increase to Rs 7,432.98 crore in Q3 FY26 from Rs 6,474.45 crore in Q3 FY25. Net premium income also rose by 12.7% to Rs 5,685.3 crore, while investment income grew by 8.23% to Rs 909.01 crore during the quarter.
Despite a strong capital position, ICICI Lombard faced pressure on claims and operating efficiency. The incurred claims ratio rose to 68.70% in Q3 FY26 from 65.80% a year ago. The combined ratio worsened to 104.50% from 102.70% in the corresponding quarter last year, according to its regulatory filing.
