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Informist, Tuesday, Apr. 15, 2025

--ICICI Lombard CEO: Positive on auto sector growth in FY26, should aid ops 

--CONTEXT: Comments by ICICI Lombard's mgmt in a post-earnings analyst call 

--ICICI Lombard CEO:Remain positive on general insurance growth outlook FY26 

--ICICI Lombard CEO: See double digit growth in retail health insurance FY26 

--ICICI Lombard: May see near double digit growth in auto insurance in FY26 

--ICICI Lombard: IRDAI's new accounting norms may hit company's Apr-Jun PAT 

By Priyasmita Dutta and Cassandra Carvalho

NEW DELHI – ICICI Lombard General Insurance Co. Ltd. is banking on the motor insurance segment to drive growth in 2025-26 (Apr-Mar) at a time when positives and risks for the insurance market are almost evenly spread, according to its Chief Executive Officer Sanjeev Mantri.
 

"The auto industry is expected to have mid-single digit growth, we remain positive of the motor insurance business, with increasing penetration of vehicle segment," Mantri said at a post-earnings conference call late Tuesday. The company may see a "near double-digit growth" in auto insurance in FY26, Mantri added. 

ICICI Lombard General Insurance's net profit for the quarter ended March fell nearly 30% sequentially to INR 5.10 billion due to a fall in investment income and a soft growth in premium income. The company said that its March quarter figures could not be compared with prior years due to a change in the accounting norms.

On Tuesday, shares of the insurance company closed 6.1% higher at INR 1822.60 on the National Stock Exchange. The company announced Jan-Mar results after market hours.

ICICI Lombard's share in the motor insurance market was 10.8% in FY25, up from 10.5% for FY24, the company said in its investor presentation. The advance premium in the segment was INR 37.17 billion at the end of March compared to INR 36.44 billion a quarter ago. 

Beyond the motor insurance segment, the insurer is also hoping for a "double-digit growth" in retail health insurance in FY26. "We believe increasing demand for health protection coupled with increasing medical inflation will help with health insurance growth in FY26," Mantri said. Following the motor segment in its entire portfolio mix at 40%, health insurance makes up the second-highest share at 29%. Retail health market share stood at 3.3% in FY25, up from 3.0% in FY24, the company said. 

Mantri also said that the government's move to increase the income tax rebate limit in the FY26 Budget augers well for the insurance industry as it may lead to higher inflows, thereby aiding ICICI Lombard's financials in FY26 and an overall "positive outlook" for the general insurance growth this year. Additionally, the Reserve Bank of India's liquidity injection will also support growth, he said.

However, he noted that the company will have to "remain vigilant to global uncertainties" and its implications on the domestic front.

Mantri said that the Insurance Regulatory and Development Authority of India's new accounting norms will continue to eat into its profits in Apr-Jun. According to the insurance regulator's new accounting norms, non-life insurers must report premiums on an annual basis for all policies underwritten after Oct. 1, 2024. While non-life insurers can still underwrite long-term policies, premiums for only one year are to be recorded. This has impacted premium growth from the December quarter.  End

Edited by Saji George Titus

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