The demand for health insurance in India has risen sharply in recent years due to rising medical costs and increased consumer awareness.Tax cuts provided a further boost in the quarter for both private healthcare and car insurance. However, insurers are increasingly relying on broker commissions to drive sales, which weighs on profitability.
ICICI Lombard’s profit after tax fell 9% year-on-year to 6.59 billion rupees ($73 million) for the quarter ended December 31, while net premiums rose 13% to 56.85 billion rupees.
Net premiums from the private health insurance business increased 54.5% year-over-year, while the corporate health care segment recorded growth of approximately 14%.
The insurer’s net commissions rose 15.5% to 13.43 billion rupees. Employee-related costs rose 18% to 4.64 billion rupees for the quarter, which ICICI Lombard said reflected the impact of India’s new labor law that came into effect in November 2025.
Excluding the impact of the wage law, ICICI Lombard said profits would have fallen 3.3%.
Auto insurance premiums, which account for almost half of ICICI Lombard’s total premiums, rose about 9.5% as tax cuts that boosted vehicle sales boosted demand.
The insurer’s combined ratio – a key measure of insurance company profitability – improved to 104.5% from 105.1% in the previous quarter, but deteriorated compared to 102.7% in the same period last year.
A ratio below 100% indicates that the insurer earns more in premiums than it pays out in claims and costs.
($1 = 90.2010 Indian Rupees)
#ICICI #Lombard #reports #quarterly #profit #commissions #personnel #costs #rise