ICICI Lombard General Insurance In Focus: ICICI Lombard General Insurance Company has received an order from the Insurance Regulatory and Development Authority of India (IRDAI), imposing a Rs 1 crore penalty in connection with certain aspects of its outsourcing activities.
The company said it received the order dated September 7, 2026, following an onsite inspection conducted by IRDAI in September 2019.
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Subsequently, IRDAI issued a Show Cause Notice dated July 8, 2024, followed by a Supplementary Show Cause Notice dated December 17, 2024, providing ICICI Lombard an opportunity for a personal hearing and additional submissions.
After considering the company's submissions and the personal hearing, IRDAI imposed the penalty with respect to certain aspects pertaining to outsourcing activities undertaken by ICICI Lombard under the Outsourcing Regulations, 2017, read with the Corporate Governance Guidelines, 2016.
IRDAI has also issued additional directions and advisories to ICICI Lombard and advised the company to comply with them within the specified timelines.
ICICI Lombard Q1 Show
ICICI Lombard General Insurance reported a 46% year-on-year decline in standalone net profit to Rs 403 crore in Q1FY27, according to an exchange filing.
Net Premium Earned rose 16% YoY to Rs 5,950 crore, from Rs 5,136 crore a year ago. Gross Direct Premium Income (GDPI) increased 7.5% to Rs 8,318 crore, although this trailed the general insurance industry's 10.9% growth.
The insurer's solvency ratio improved to 2.71x as of June 30, 2026, from 2.67x in March and remained well above the regulatory minimum of 1.50x.
However, the combined ratio worsened to 107.2% from 102.9% a year ago. ICICI Lombard said two large fire claims worth Rs 63 crore and an additional Rs 165 crore provision for Motor Third-Party claims following a Supreme Court judgment contributed to the deterioration.
Investment income declined to Rs 1,174 crore from Rs 1,288 crore, while net capital gains fell to Rs 183 crore from Rs 380 crore. RoAE dropped to 9.6% from 20.5%; excluding the impact of the fire losses and Motor TP provisions, it would have been 13.6%.
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