ICICI Lombard Q2 FY27 Results Analysis: PAT Jumps 15.5%, Combined Ratio Stays Elevated (ICICIGI)
ICICI Lombard General Insurance Company Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 7,843.72 Cr (+19.16% YoY) and PAT growth of +15.48% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 14, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 7,843.72 Cr (+19.16% YoY) |
| PAT (Q2) | Rs. 946.40 Cr (+15.48% YoY) |
| EBITDA margin | 11.14% (-29 bps YoY) |
| EPS (Q2) | Rs. 18.95 (+14.90% YoY) |
| Market cap | Rs. 85,589.59 Cr |
| CMP | Rs. 1,713.00 |
Quarter Snapshot
Q2 FY27 standalone delivery was solid — PAT up 15.5% YoY to Rs.946.40 Cr on 17.7% premium-earned growth and 29.1% investment-income growth, with Motor operating profit up 32.2% at a 25.3% margin. However, the underwriting loss widened to Rs.318.38 Cr, the combined ratio stayed at 107.0% versus FY26's 103.4%, and both Health segments swung to operating losses despite 47-49% premium growth. Management's own FY2027 targets — outperforming industry GDPI growth by 100-200 bps and 18-20% ROE — appear out of reach, with GDPI growth of 9.11% trailing the industry by ~90 bps and annualized ROE at ~15%.
Key Investment Insights
Key Positives
- Total income grew 19.2% YoY to Rs.7,843.72 Cr; net premium earned grew 17.7% YoY to Rs.6,651.87 Cr
- PAT grew 15.5% YoY to Rs.946.40 Cr and operating profit grew 16.05% YoY to Rs.873.47 Cr
- Investment income grew 29.1% YoY to Rs.1,160.83 Cr
- Motor operating profit grew 32.2% YoY to Rs.752.84 Cr with margin expanding 4.4 pp to 25.3%, contributing 86% of total operating profit
- Health Retail premium grew 49.5% and Health Group premium grew 47.5% YoY
- Miscellaneous Group operating profit grew 202.9% to Rs.81.84 Cr on −1.8% premium, with margin expanding from 9.6% to 29.5%
- Net retention ratio improved to 80.7% from 75.3% YoY; solvency ratio improved to 2.75x from 2.71x in Q1
- Crop segment swung to a Rs.23.14 Cr operating profit from a Rs.46.53 Cr loss in Q2 FY26; interim dividend of Rs.7 per share declared (~Rs.350 Cr payout)
Risk Factors
- Combined ratio of 107.0% remains 190 bps above FY26's 103.4%; underwriting loss widened to Rs.318.38 Cr from Rs.178.36 Cr YoY
- Health Retail swung to a −Rs.16.86 Cr operating loss (from +Rs.39.57 Cr) and Health Group to a −Rs.118.86 Cr loss (from +Rs.18.48 Cr) despite 47-49% premium growth — a combined swing of nearly Rs.194 Cr
- GDPI growth of 9.11% trailed industry ~10%, missing the outperform-by-100-200 bps guidance by ~90 bps
- Expenses of management ratio jumped to 36.3% from 28.8% in Q1 and 31.9% YoY, with commissions growing 25.3% and outpacing premium growth
- H1 PAT declined 13.9% YoY to Rs.1,349.57 Cr; operating cash flow was negative at −Rs.383.66 Cr (CFO/PAT −28.4%)
- Fire premium contracted 24.3% YoY and Fire operating profit declined 18.3%
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.