• Underwriting results: On an end basis, the Q2 combined ratio rose from 103.9 last year to 104.5 this year; excluding high-intensity catastrophe events, it was nearly flat at 102.6 and 102.7, respectively. Management said severe flooding in Gujarat and Assam affected this quarter.
• Investment returns: Management aims to sustain return on equity of 18 to 20% through both insurance operations and investment income. Higher interest rates, a longer-duration investment book and capital gains have supported returns, while liquidity remains important for claims settlement.
• Motor outlook: ICICI Lombard said it remains the motor market leader and has maintained market share, while industry motor combined ratios deteriorated from 125 to 131%. It expects competitive intensity to ease and cited customer retention increasing between 3 to 5%.
• Underwriting levers: Management expects better pricing in commercial lines and cited retail health loss ratios within its 65 to 70% target range. It sees improvement coming from revenue growth, more efficient claims management and operating productivity, while maintaining a combined-ratio gap of more than 10% versus the industry.
• Expense proposal: The draft consultation paper proposes reducing the expense-of-management threshold from 30% to 25% over the next 2 years and 20% over the next 5 years. ICICI Lombard said it has stayed within regulatory limits; 13 of 35 insurers currently exceed the limit, and the industry changes could support affordability and volume growth.