India’s ICICI Lombard posts lower quarterly profit as commissions, employee costs rise

India’s ICICI Lombard General Insurance reported a decline in third-quarter profit on Tuesday, as higher payouts to agents and employees outweighed strong demand in retail health and motor insurance.

Backed by ICICI Bank, one of India’s largest private lenders, ICICI Lombard offers marine, crop and fire insurance, in addition to motor and health coverage.

Demand for health insurance in India has surged in recent years amid rising medical costs and heightened consumer awareness.

Tax cuts further boosted momentum in the quarter for both retail health and auto insurance. However, insurers are increasingly relying on agent 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 climbed 13% to 56.85 billion rupees.

Net premiums from its retail health insurance business rose 54.5% from a year earlier, while the corporate health segment posted a growth of around 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 labour code enacted in November 2025

Excluding the impact of the wage code, ICICI Lombard said profit would have dropped 3.3%.

Motor insurance premiums, which account for nearly half of ICICI Lombard’s total premiums, increased about 9.5%, as tax cuts that lifted vehicle sales boosted demand.

The insurer’s combined ratio — a key measure of underwriting profitability — improved to 104.5% from 105.1% in the previous quarter, but deteriorated compared to 102.7% in the year ago period.

A ratio below 100% indicates the insurer is earning more in premiums than it pays out in claims and expenses.