ICICI Lombard General Insurance Company Ltd

Good evening, ladies and gentlemen. A very warm welcome to ICICI Lombard General Insurance Company Limited's Q3 & 9M FY2026 Earnings Conference Call.

From the Senior Management, we have with us today, Mr. Sanjeev Mantri – MD & CEO of the Company; Mr. Gopal Balachandran – CFO; Mr. Anand Singhi – Chief – Retail and Government; Mr. Girish Nayak – Chief – Technology and Health Underwriting & Claims; Mr. Sandeep Goradia – Chief – Corporate Solutions, International & Bancassurance and Mr. Gaurav Arora – Chief – Reinsurance, Underwriting & Claims for Property & Casualty.

Please note that any statements, comments are made in today's call that may look like forward-looking statements are based on the information presently available to the management and do not constitute an indication of any future performance as future involves risks and uncertainties which could cause results to differ materially from the current views being expressed.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing * and then 0 on your touchtone phone.

I now hand the conference over to Mr. Sanjeev Mantri – MD & CEO, ICICI Lombard General Insurance Limited. Thank you and over to you, sir.

Good evening to each one of you. Thank you for joining the earnings conference call for ICICI Lombard for Q3 & 9M FY2026. At the outset, let me wish you all a very Happy New Year and best of health and happiness.

I would like to give you a brief overview of the recent economic and industry trends, which has shaped the operating environment over the past few months.

Following that, our CFO, Mr. Gopal Balachandran, will take you through the Company’s financial performance for the recently concluded quarter and nine months.

The Indian economy recorded a GDP growth of 8.2% in Q2 FY2026, up from 7.8% in the preceding quarter. The expansion was underpinned by sustained government capital expenditure, coupled with an increase in private capex, robust services activity, and a rebound in private consumption. Consumption was further supported by easing inflation and the GST rationalization implemented in late September 2025.

Coming to Q3 FY2026, the index of industrial production, IIP data indicates positivity supported by manufacturing growth, continued infrastructure development, and a turnaround in consumer goods segment. E-Way bills generation and toll collections during the same period record a growth of 13% and 17% Y-o-Y, reflecting strong underlying economic activity. We believe that these high-frequency indicators should augur well for our Commercial line-off segment.

Buoyed by GST rationalization, the automobile sector has seen a significant uptick in sales. According to Retail sales data based on Vahan registration, the auto industry recorded a growth of 19.5% for Q3 FY2026, resulting in a total of 9.4 million vehicles sold. Within this, Private Car has seen a growth of 19.3%, translating to 1.3 million vehicles. The Two-wheeler segment grew by 19.2% with the 7 million vehicles, whereas Commercial Vehicles (CV) grew by 22.2%, with 1.1 million vehicles being sold.

Interestingly, the overall growth in the vehicle sales is the highest in last 12 quarters. To add to it, this growth is more broad-based, as tier 3 cities and beyond have demonstrated faster growth in both Private Car and Two-wheeler segment. This is also corroborated by a strong growth of 28.8% in tractor sales for the quarter.

Overall, the acceleration in new vehicle sales for the quarter has also led to a 7.7% growth for calendar year 2025, with 28.1 million units being sold.

The landmark decision of exemption of GST on Retail Health insurance has significantly improved affordability and increased awareness. The industry has passed on the complete benefit of GST exemptions to the end customers. This has led to an increase in policy uptake as more customers are seeking health care protection. Here, too, the growth in Retail Health appears to be broad- based across markets and is supported by a surge in first-time buyers, especially for tier 2 and tier 3 cities, which is a positive for this sector.

On the regulatory front, the Government of India took a significant step during the quarter by introducing forward-looking reforms in the insurance laws with the passage of Sabka Bima Sabki Raksha, Amendment of Insurance Laws Bill 2025. While most of these amendments will have far-reaching effects on the insurance sector over time, a few important changes pertaining to the

We are excited about these changes and we do believe that this should be structurally positive and would accelerate the growth and development of the insurance sector. This will also facilitate ease of doing business and provide better protection and risk management solutions to the policyholders.

In another significant reform in November 2025, the Government of India formally made effective four new central labor codes, including the Code on Social Security 2020. Consequent to this, benefits like gratuity, leave encashment, etc., paid on basic salary are now required to be paid basis the new broader definition of wage. We believe these changes should translate into a more resilient workforce and strengthen employee security over time.

This change has a one-time impact on the financials, which will be covered by Gopal in his section.

Let me now dwell upon the industry performance for the period ended 31st December 2025:

The General insurance industry reported a GDPI growth of 8.7% for 9M FY2026.

Excluding Crop and Mass Health segment, the GDPI growth stood at 13.3% for the period 9M FY2026.

Commercial segment recorded a healthy growth of 14.8% for 9M FY2026 and 16.3% for Q3 FY2026. This growth led by strong momentum in the Fire line, which grew at 20.1% for 9M FY2026. As mentioned above, this is driven by an increase in capital expenditure, particularly in areas such as roads, railways, and renewable energy. The Motor segment grew at 8.9% in 9M FY2026, compared to 7.6% in H1 FY2026. For Q3 FY2026, the growth stood at 10.9%, supported by festive season demand and the positive impact of GST rationalization. Health segment grew at 14.2% for 9M FY2026, with a strong momentum of 27.6% growth in Q3 FY2026, led by Retail Health, which grew at 33.6% and Group Health growth of 23.1%, underscoring strong demand across the segment.

On the other hand, industry Combined ratio (CoR) worsened from 113.3% in H1 FY2025 to 119.2% in H1 FY2026, indicating continued underwriting pressure.

During the same period, ICICI CoR moved from 103.2% in FY2025 to 104.0% in H1 FY2026, reinforcing a superior financial performance through disciplined underwriting.

The Motor line of business remains a key area of stress with the industry CoR increasing from 124.8% in H1 FY2025 to 128.5% in H1 FY2026. ICICI Lombard demonstrated better portfolio management in Motor insurance with the Combined ratio improving from 108.0% to 106.9% during the same period.

For 9M FY2026, Gross Domestic Premium Income (GDPI) of the Company grew by 3.6% compared to industry growth of 8.7% for the same period. Within this, for Q3 FY2026, the Company reported a premium growth of 13.3% compared

Page 6 of 31 to industry growth of 11.5%, thereby improving its market share from 8.1% for Q3 FY2025 to 8.3% for Q3 FY2026. For December 2025 in particular, the Company's growth in GDPI was 16.1% in comparison to the industry growth of 14.4%. Excluding Crop and Mass Health, the Company recorded a growth of 7.5% during 9M FY2026, against the industry growth of 13.3%. Within this, for Q3 FY2026, the Company recorded a growth of 16.4%, as against the industry growth of 20.1%.  In the Commercial line segment, our growth stood at 7.4% and 6.8% for Q3 FY2026 and 9M FY2026, respectively, while the industry grew by 16.3% for Q3 FY2026 and 14.8% for 9M FY2026.

We continue to be focused on delivering profitable growth through disciplined underwriting, prudent risk selection and portfolio diversification, resulting in the growth of Fire segment by 18.8% in Q3 FY2026, driven by 27.4% growth in the SME segment. Further, the Company delivered a 19.3% growth in Fire compared to 15.8% industry growth for the month of December 2025.

In the Engineering segment, our growth stood at 15.2% and 13.3% for Q3 FY2026 and 9M FY2026, respectively, while the industry during the same period grew by 11.5% and 12.9% respectively. This led to reattaining leadership position in Engineering segment for the 9M FY2026.

On the other side, for 9M FY2026, the Company's growth for Marine Cargo and Liability segment was not in line with the industry growth on account of portfolio rationalization. However, we continue to maintain our leadership position in these lines.

 In Motor segment for 9M FY2026, the Company recorded a growth of 5.0%, whereas the industry grew by 8.9%. While our growth in H1 FY2026 was only 2.2%, a rebound was observed in Q3 FY2026, driven by an underlying buoyancy in new Motor vehicle sales. Consequently, the Motor segment grew by 9.3% in Q3 FY2026, supported by a strong growth of 16.1% in December 2025. Despite heightened competitive intensity in the recent quarter, we remain focused on profitable growth driven by continuous expansion across distribution channels and a more granular portfolio segmentation.

Page 7 of 31 Importantly, the Company continues to maintain its leadership position in the Motor segment with a market share of 10.7% for 9M FY2026. The Company's portfolio, Motor portfolio mix of Private Car, Two-wheeler and Commercial Vehicles stood at 53.6%, 25.8%, and 20.6% respectively for 9M FY2026.  In the Health segment, the Company grew by 42.0% and 13.8% for Q3 FY2026 and for 9M FY2026, respectively, as against the industry growth of 27.6% and 14.2% for Q3 FY2026 and 9M FY2026 respectively. o Our Retail Health business delivered a robust growth of 85.8% in Q3 FY2026 and 44.8% in 9M FY2026, significantly outperforming the industry growth of 33.6% in Q3 and 16.5% for 9M FY2026. Our growth was fueled by new-to-industry customer growth of 1.7x for Q3 FY2026 and 1.4x for 9M FY2026. Thus, our market share increased to 4.0% in 9M FY2026 compared to 3.2% for the same period in the previous year and for Q3 FY2026, our market share has increased to 4.5% from 3.2% for the same period in previous year. The strong performance has also been driven by sustained investment in strengthening our Retail distribution capabilities across channels. o The Group Health segment registered a growth of 26.6% and 5.9% for Q3 FY2026 and 9M FY2026 respectively, while the industry grew by 23.1% for Q3 FY2026 and 12.6% for 9M FY2026.

Page 8 of 31 customers adopting DIY service modes. This has led to improve turnaround times, service consistency and increased productivity. Our differentiated service initiatives which we had spoken about in a previous call have resulted in increase of our Call Centre NPS to 73 in Q3 FY2026 from 60 in Q1 FY2026.

o Building on a “One IL One Digital” framework, we continue to take positive strides toward offering a seamless and omni- channel experience across our website and the ‘IL TakeCare’ platform. As you might recall, the ‘IL TakeCare’ app was initially launched to provide a “Continuum of Care” for our Health insurance customers. Over time, the app has continuously evolved with new functionaries and features making it a comprehensive one-stop solution for service and sales across multiple Retail product lines.

The app has now crossed 19.7 million downloads as at December 31st, 2025, reflecting growing customer engagement and digital adoption. The Company registered a GWP of ₹ 3.54 billion for 9M FY2026 from the ‘IL TakeCare’ app as against ₹ 1.45 billion for the same period last year. ‘IL TakeCare’ has also made significant progress in addressing key customer service requirements and delivering a seamless insurance experience. Just to highlight, for ‘TripSecure+’, our premier travel insurance product, customers can now independently manage claims, policy cancellations, extensions, and modifications through the app. These enhancements have enabled 93% of service requests to be processed on DIY basis without the need for manual intervention, leading to a corresponding reduction in support call volumes. Notably, 79% of claim intimation for ‘TripSecure+’ in December 2025 were also initiated through ‘IL TakeCare’ app as compared to 22% in July 2025.

In order to continually enhance our efficiency levels in Motor claims, we have expanded our cashless garage network from 13,600 plus garages in Q3 FY2025 to 15,000 garages in Q3 FY2026. 75.2% of our non-OEM claims for Q3 FY2026 were serviced at PPN up from 73.6% in Q3 FY2025, leading to enhanced customer experience.

In the Retail segment, 99.6% of our total claims were paid within 30 days and for Motor Insurance Own Damage segment, 96.8% of our claims were paid within 30 days for the period ended 9M FY2026.

As a result, our NPS for H1 FY2026 for Health claims stood at 70 and for Motor claims stood at 69, reinforcing our position as a customer centric organization.

In conclusion, the domestic macro environment remains supportive with broad base consumption showing healthy momentum. We remain focused on building a sustainable long-term franchise anchored in the strength of our technology processes and service architecture. Through our ‘One IL, One Team’ initiatives, we continue to sharpen execution, drive consistency and deliver customer outcomes at scale. We are well positioned to convert a more supportive demand environment into a steady high-quality growth while maintaining discipline and underwriting service delivery and operating efficiency.

I will now request Gopal to take you through the financial numbers for the period 9M FY2026.

You all can access it as we walk you through the performance numbers.

With effect from October 1, 2024, long-term products are accounted on a 1/n basis as mandated by our regulator. Please refer to the Investor Presentation

Page 10 of 31 on Slide 16 for a much more detailed information on comparison of financial on n and 1/n basis.

Now let me update on GDPI numbers. Please note these numbers are on 1/n basis:

The GDPI of the Company was at ₹ 213.72 billion in 9M FY2026 as against ₹ 206.23 billion in 9M FY2025, a growth of 3.6% as against the industry growth of 8.7%.

GDPI of the Company was at ₹ 70.41 billion in Q3 FY2026 as against ₹ 62.14 billion in Q3 FY2025, a growth of 13.3% as against the industry growth of 11.5%, resulting in our market share to grow from 8.1% in Quarter 3 last year to 8.3% in Quarter 3 of the current year.

On the retail side of the business, GDPI of the Motor segment was at ₹ 33.99 billion in Q3 FY2026 as against ₹ 31.09 billion in Q3 FY2025, registering a growth of 9.3%. The advance premium for Motor segment was at ₹ 41.26 billion as at December 31, 2025, as against ₹ 39.13 billion as at September 30, 2025.

GDPI of the Health segment was at ₹ 20.44 billion in Q3 FY2026 as against ₹ 14.53 billion in Q3 FY2025, registering a growth of 40.6%. o Within this, our Retail Health segment registered a robust growth of 85.8% during the same period.

GDPI of our Commercial line was at ₹ 15.72 billion in Q3 FY2026 as against ₹ 14.63 billion in Q3 FY2025, registering a growth of 7.4%.

Our agent, which includes the point of sale distribution count was 1,50,458 as at December 31, 2025, up from 1,47,408 as at September 30, 2025.

Our Combined ratio on 1/n basis was 104.2% in 9M FY2026 as against 102.9% in 9M FY2025. On an n basis, our Combined ratio was 103.1% in 9M FY2026 as against 102.8% in 9M FY2025. Combined ratio on again 1/n for this Q3 FY2026 is 104.5% as against 102.7% in Q3 FY2025. Again on an n basis, for Q3 FY2026, Combined ratio was 103.1% as against 102.3% in Q3 FY2025.

Page 11 of 31  We have been talking about the impact of CAT losses. If one was to exclude the impact of CAT losses of ₹ 0.84 billion in 9M FY2026 and ₹ 0.94 billion in 9M FY2025, the Combined ratio on a 1/n basis was 103.7% and 102.3% respectively. The same numbers on an n basis was 102.6% and 102.2% respectively.

On n basis, our Combined ratio excluding wage code impact was 102.8% and 102.2% for 9M and Q3 respectively.

Our investment assets during the quarter rose to ₹ 582.96 billion as at December 31, 2025, up from ₹ 562.00 billion as at September 30, 2025. Our investment leverage net of borrowing was 3.60x at December 31, 2025 as against 3.57x at September 30, 2025.

Investment income was at ₹ 37.57 billion in nine months current year as against ₹ 33.73 billion in nine months last year. On a quarterly basis, investment income was at ₹ 12.19 billion in Q3 current year as against ₹ 11.21 billion in Q3 last year.

Our capital gains net of impairment to investment assets stood at ₹ 9.33 billion in nine months current year as against ₹ 7.96 billion in nine months last year.

Capital gains stood at ₹ 3.17 billion in Quarter 3 current year as compared to ₹ 2.76 billion in Q3 last year.

On a 1/n basis, our PBT grew by 10.8% at ₹ 29.41 billion in 9M FY2026 as against ₹ 26.53 billion in 9M FY2025. Again for the quarter, on a 1/n basis, PBT de-grew by 9.4% at ₹ 8.70 billion for the current quarter as against ₹ 9.60 billion in Q3 last year.

Consequently, on a 1/n basis, PAT grew by 11.3% at ₹ 22.25 billion in 9M FY2026 as against ₹ 19.99 billion in 9M FY2025. The same numbers on an n basis for profit after tax grew by 13.8% at ₹ 22.22 billion in 9M FY2026 as against ₹ 19.53 billion in 9M FY2025.

On a 1/n basis, PAT de-grew by 9.1% at ₹ 6.59 billion in Q3 current year from ₹ 7.24 billion in Q3 last year. Again, coming back to n basis, PAT remained flattish at ₹ 6.80 billion in Q3 current year from ₹ 6.79 billion in Q3 last year.

Excluding the impact of wage code, on a 1/n basis, PAT was ₹ 22.67 billion in 9M FY2026 and ₹ 7.00 billion in Q3 current year, registering a growth of 13.4% and a de-growth of 3.3% respectively.

The same numbers on an n basis, PAT was ₹ 22.64 billion for 9M FY2026 and ₹ 7.21 billion in Q3 of this quarter, registering a growth of 15.9% and 6.3% respectively.

Coming to ROE, on a 1/n basis, it was 19.5% in 9M FY2026 as against 20.8% in 9M FY2025. ROE for the Q3 FY2026 was 16.5% as against 21.5% in Q3 FY2025. Excluding the wage code impact, on a 1/n basis, ROE was 19.8% and 17.5% in 9M FY2026 and Q3 FY2026 respectively.

Solvency ratio was at 2.69x at December 31, 2025 as against 2.73x at September 30, 2025, continued to be higher than the minimum regulatory requirement of 1.50x.

As I conclude, I would like to state that we are all aligned with our ethos of driving profitable growth, consistent and sustainable value creation for all our stakeholders while ensuring that the interest of the policy holders are in the forefront at all times. I would like to thank you all for attending this earnings call, and we will now be happy to take any questions that you have. Thank you.

Thank you very much. We will now begin with the question-and-answer session. Our first question comes from the line of Supratim Datta from Jefferies.

My first question is on the labor code. You know, we understand that there is a ₹ 50 crore impact from the labor code changes. Just wanted to understand

Page 13 of 31 what proportion of this was recurring versus what proportion of this was one time? That was the first question.

Secondly, coming to growth, now despite the GST tailwinds, the growth even on the Motor side, if I see, has been slower than what the industry has witnessed. And I do understand that competition has been elevated, but the regulator at the regulatory level has taken multiple steps, be it expense of management guidelines or discussions with industry to reduce the competitive intensity or bringing some bit of rationality, yet we are not able to see that happen. So from here, if I am taking a 2 to 3 year view, what will drive growth in the Motor segment for a player like you which already has 10-11% market share? If you could throw some light on that, that would be very helpful.

And lastly, on the Motor TP loss ratio, I do understand last time there was a TP release. But this time it seems to be a more normalized loss ratio. Should we assume that the reserve release is too old and there is no further release that would come in the fourth quarter or could there be further releases that would come in the fourth quarter? If you could throw some light on the reserve release, that would also be very helpful.

Having said that, obviously this code is also evolving. So, hence, to that extent, we will have to see if there are any more incremental guidelines or rules that come into existence, but at this point of time basis whatever has been released thus far, this impact of ₹ 55 crores is what is the past service cost which is a complete impact that we have taken in the financials of Quarter 3 and 9 months. And if you would have seen also the disclosure that we have made, there is an element of roughly about ₹ 17 crore. This is the amount of unamortized cost which will get amortized over the next 3 years in line with the actuarial report. Those are the two numbers in so far as the impact of wage code is concerned. ₹ 55 crore is more a onetime impact in the financials. ₹ 17 crore of un-amortized cost is something that will get amortized over the next 3 years. So that is in response to the first one.

On the response to the third question, Motor Third-Party loss ratios, I will keep reiterating this. What we have told the market is overall Motor loss ratio range that we have spoken is between 65% to 67%, and if you look at the 9 month numbers and that is something that we keep urging that you should keep looking at year-to-date numbers than more quarterly outcomes. The 9 month numbers for the current year Motor overall stands at about 66.3%. This is both Own Damage and Third-Party put together. It's pretty much playing out in line within the range that one has spoken about. And hence, to that extent, we are quite happy with the way how things have progressed.

To your point on any impact of reserving etc. again, we will keep stressing on the fact that there has been no change in any of our actuarial assumptions.

And therefore, to that extent, it is not that we have done anything specific whether it was in the context of last year or even for the matter of fact when you look at the numbers from the current year perspective. So that is in response to the third one.

And on the second one, maybe Sanjeev.

So, on the Motor part, clearly, first up, we are extremely excited with the positive environment that has got created. As I was giving the briefing, the Quarter 3 numbers, the growth in number of vehicles across Private Car, Two-wheeler as well as CV, which has been more than 19%, the highest in last 12 quarters, is a very, very good sign. This increase in number has also come with the GST rationalization which made the vehicles cheaper. And with that coming through, we had to also realize what is required and we also spoke about in terms of how the Combined for the market has moved in Motor from 124 which was hard enough to move to 128.

So the realignment was a very key piece, which is what we as an organization have done. Consequent to this, what we are seeing is the growth of December in particular where we have exceeded the market expectation. We remain very positively driven overall as to what Motor holds for us. We closed the year with a 10.7% market share, probably a loss of 0.4 or thereabouts as to what we had 9 months, but as we close, the positivity with which we expect even Q4 numbers to build up on the new sale would drive growth for us because that is the combination which we are probably best at.

Overall, from an environment standpoint, we do see consumption playing a big role and in that, of course, mobility of Two-wheeler customers seeking Private Car and thereabout also is becoming very clear. Also, one more point which augurs well for us is we have been a distribution-led Company and the growth is broad-based, which is where they say that we are on tier 3 and above where the market growth also is coming, it again is a bit positive for us and it will help us to drive what we want to drive as an agenda.

So, we are overall on Motor very positively placed, but the realignment in wake of what the intensity is seen is something which is warranted and we always maintain that we will never shy away from taking those calls, but a range bound 10.7% market share where we stand, we are pretty much involved as a number one player. As a top most player, we are also very aware of the responsibilities that we carry in the Motor segment in particular.

Your next question comes from the line of Sanketh Godha from Avendus Spark.

See, the Retail Health growth 85 or 86 odd percentage in the third quarter, honestly, it has the unwinding portion of last year too. So, if I do n-to-n comparison, which is more like-to-like, so can you just spell out the growth, how the Retail Health has panned out if you look on n-to-n basis?

Page 16 of 31 What we are very, very excited is more the underlying demand momentum than looking at numbers whether on an n basis or a 1/n basis.

Yeah. And also we have been talking about, if you look at the numbers, we have grown on 80% plus in all three months October, November and December. So, very clearly, the need for differentiating that and talking as it is, it is not an easy commentary. We are talking 1/n or n. For you to listen on audio itself is a challenge I can tell you. Probably you can make more sense than when you have the script in hand, but this growth and what we have been doing over sustained quarter also is reflected in the market share, which has increased to 4.5% in Q3, which clearly speaks about the underlying momentum that the team has been able to build.

And if your question is, do you see this momentum probably playing out even in Quarter 4? My answer would be every reason to believe, and it's again driven by a very good demand across markets. So, there is a play, and we have a product, and we have a team which is capable of driving this transition. If you would have asked the beginning of the year, did we expect 4.5% of a market share? My answer would have been, probably it would have been a shade lower than that. So, there is tailwind which is also helping us look better than what we could have been, probably would have been 4%. So, it is pretty much there and we are well settled. So we are at the right place at the right time as far as Health is concerned.

Sanjeev, honestly, this growth is little extraordinary even if I look from the industry standard point of view. Is it any particular channel in which you were not present and now exploring the channel that has contributed to the growth?

No, that I can explain you. That I can, Mr. Sanketh, if that is what your question was. So, see, the product Elevate was launched in July, 2024. Okay. So we had started doing well in that and that renewal base also comes and gets added to the book. So, mathematically plus supported by the tailwinds, that is an answer to that part. I mean, I am definitely not saying that 85% of the growth that will continue over quarters and quarters. So, mathematically speaking, the retention of a product and the quality product is there, then you get good customers and the retention also is very high. And so there is that part which is helping us to drive this kind of a growth, Sanketh.

Understood, but any new channel which contributed, like, maybe you were not presenting one?

Of course, our agency channel has opened up significantly, and we were able to attract lot more channels. So, agency is driving this growth, but at the same time, even on websites, so we have been pretty across channels. But the contribution percentage per se of what was there would not have gone through the significant change if you look at the distribution pattern. So, we are seeing this growth across channels, Sanketh. And even Banca for that matter.

No, the reason I am asking this question is that, is our payout structure to the distributor is more skewed on n basis rather than 1/n basis?

No, no, no, no, we have absolute clarity that even if it is long term, what we will do is what comes with 1/n. As a team, for us, we continue to operate strictly on those guidelines, Sanketh.

So, basically commission payouts are also on 1/n basis.

On that, yes. So, it would be differentiated to that extent that first year would be something and then second and third year, that obviously is the case, but it is distributed basis.

Our next question comes from the line of Prayesh Jain from Motilal Oswal.

Just a couple of questions. Firstly on the Motor side, Sanjeev, we have seen tremendous growth in volumes, and what I have understood is there is premiumization trends as well. In spite of that, the premium growth for the industry has a decent gap between the volume growth of the industry as well as the premium growth what we have seen, right? So, in that sense, what is causing that disparity? And have you seen any further pricing aggression in Q3 with respect to Motor OD premiums given that it was anticipated that the

Page 18 of 31 growth would be there and the competition intensities increase? That is my first question.

And second question is in terms of Retail Health, could you give us some qualitative or some numbers around as to what is the growth that is driving the new customers that are coming? What are they coming at? What kind of sum assured they are coming? And also the existing customers, are they scaling up the sum assured and maintaining the premium levels? Or what is the kind of trajectory that we are seeing there?

So, on the Motor side, Prayesh, clearly, if you see the growth has been broad based and we have seen small cars, the small hatchback cars being sold far higher than any other car. So, the volume growth may not necessarily translate into a equivalent growth in premium for the industry. And also what has to be noted is that this growth also is fueled by the rationalization which happened from 28% to 18%, which itself led to an impact on the yield per vehicle going down.

So, it is the combined thing, and that is where the realignment also had to be done by us as a team to ensure that what we pick up overall from the market with respect to our own Motor portfolio. And also we spoke about how the H1 is seeing the Combined ratio getting, that is to answer the competitive intensity that you are speaking about, the Motor Combined in 124.5 and thereabouts had very little room to go further down. It moved on to 128. And if that is the kind of development that comes in, there is no reason to believe that the competition intensity has gone down.

And at the same time, you spoke about specific players coming in and coming out. Frankly speaking, our journey is very secular. You know, we have got a decent understanding, and we back ourselves in terms of what we are picking up and what we want to do in this Motor segment in particular. And we have always maintained that we are very comfortable walking away what is not making basic sense on the ROE level for Motor as a book.

So, we do understand we are willing to play the game if there is an ROE that comes through even if it is on an elevated Combined, but not in a random manner where we just keep acquiring because there is an opportunity

Page 19 of 31 available. So that kind of a discipline is what drives us, and that is why when the industry has moved from 124 to 128, our Combined actually improved by some percentage and some few more basis points in that H1 period also. So, it is to be taken in collaboration while maintaining market leadership.

So, for further pricing aggression, very little room, but we have maintained that over last couple of quarters, we are very unfazed because of our journey of how we can slice and dice and do what makes sense for us. We would back ourselves, and we are very confident that we will be able to deliver what is warranted for us as a Company. Prayesh, I hope this answers what you are seeking on Motor.

So, I know TP hike is another part which I must add to say which has made the yield look what it is. We have been always expecting it, but it's not come through as yet.

Just one thing on that Motor before you kind of answer the Retail Health. The hatchbacks and the smaller cars, would you say that given a lot of them could be the first time buyers structurally and given you have a large history of data on the same kind of vehicles being sold and first time buyers, would you say that the loss ratios could be higher on this segment going ahead?

So, yes, of course, Prayesh, we can discuss in detail, but the long answer I will make it short and say the cars have also started coming with much better safety features. The road also has changed. So, there is a lot more. The challan systems are getting digitized. The overlay in terms of investigating what's gone wrong because there are cameras everywhere across the country, the surveillance has increased. So, there is lot more pluses. There are lot more minuses. I am not saying it, and these are all the factors that we are able to use to drive what we want to drive as a team, and that is the USP that we carry, right? So, we won’t be too fazed by it. And if we do see segments going out of hand, I think our ability to take a call probably ahead of the market is what differentiates us as a team. I hope again I am able to put across what I am saying, Prayesh. Yes, absolutely. Just the Retail Health.

On the Retail Health, clearly we have seen far more awareness. I think this GST cut besides, of course, making it more affordable has been the biggest marketing to make the individuals and their families to realize that Health insurance is critical. And as a trend, to be very honest, we do see sum insured increasing significantly. We see bulk of our customers in the range of 7.5 lakh to 10 lakh sum insured, which is a big positive. Also, to just share with all of you, whenever a customer picks up a higher sum insured, their ability to retain and be with us is much higher because the quality of the customer is much better. So, yes, it is a big plus for us as a Company.

Your next question comes from the line of Avinash Singh from Emkay Global.

So, couple of questions. The first one is, looking at the impact of 1/n in terms of a Combined ratio, is it kind of a fair assumption that your multi-year product has seen a very, very strong growth? If you can sort of provide some color, I mean, within your Retail Health, what is the multi-year premium share? So, that is one.

Second, that now we have seen 9-10 months of the year, so for FY ’27, if I have missed, I don’t know, you can provide some kind of guidance on growth as well as on Combined? And in Motor Third-Party, should we expect by Q4 some reserve releases, given that where you are reserves are setting or reserve release in FY ‘22 to ‘24 is still pretty minimal, so is it fair to assume that okay the Q4 should see some Motor TP reserve release?

So, we will wait and see. By the time we announce results for the next quarter, hopefully we will see where we land. So, we will keep all of you updated on that.

On the second piece on what is it that we can expect for the next year, I think this is something that we had spoken even in last quarter as in to say that, given the strong growth momentum that we see getting rebound back to us,

Page 21 of 31 what we have always maintained is at a top line or from a growth standpoint, we have tried to see if we can be 100 to 200 basis point at a Company level better than the industry growth numbers. This is cutting across all lines. And that is exactly what possibly you would have seen getting exhibited in Quarter 3 for us in terms of where our growth vis-à-vis the industry growth. And even more specifically, if you would have seen even for the month of December, I think we have had an outperformance vis-à-vis the overall industry number.

So, therefore, that is something that we would endeavor even as we head into given the strong growth momentum that one is seeing on ground. And hence, to that extent, that is what we would kind of pencil in terms of trying to continue to gain incremental market share.

On Combined, more important than the combined, I think what we have largely spoken is to try and see if we can continue to sustain delivering ROEs in the range of 18% to 20%. Even if you would have seen the numbers for the 9 months, it's been roughly around 19% there about. So, hence, to that extent, in that range of 18% to 20%. So, that is something that is what we would look forward again when you look at how we would want to play out even for the next year from an ROE standpoint.

To your first point, I think it is a high single-digit number in terms of the proportion of long-term premiums vis-à-vis the total premium that we underwrite, but I think the only thing that we would keep urging is, I think even as I was reading the transcript, I did realize there are so many numbers on n and a 1/n basis across various parameters. So, hence, to that extent, if you ask us, this will actually continue for even maybe for the next three quarters because while Quarter 3 of this year onward now everything is on a 1/n.

But still there will always be a factor of the first question that was being asked in terms of what is the impact of accrued of last year in this quarter and so on and so forth. So, hence, to that extent, a far better reflection is to keep looking at numbers on an n basis. And there if you would have seen our Combined for Quarter 3 has actually been better. I think, if you look at Quarter 3 of last year, our Combined was roughly about 102.3%, and this number on an n basis for Quarter 3 of the current year is 102.2%.

So, Gopal, there I just want to interject and make this point, and we had said that also when 1/n came in, as a Company, we don't want to confuse at any point of time economic value to accounting. We are very clear. So, we have in all our conversations with our team and key personnel who are involved, we only discuss on n basis because that is the true value which will get embedded in the Company. What comes because of the accounting part is just an outcome for us, and that is the real value that we can add. Even our budgets for that matter, if I have to share, are all taken on n basis because that is how portfolio can be picked up in the right manner and even cash flows can get generated. Otherwise, a tendency to make it shorter and shorter would erode value over long term.

Our next question comes from the line of Nidhesh from Investec. Please go ahead.

Sir, can you share the mix of new and what is old vehicles in Motor Segment? I am trying to understand whether the market share trends, how they are shaping up in both these segments? Have we lost market share in the new side that is reflecting into lower growth or it is in both segment market share trends are broadly similar?

So, Nidhesh, just for the benefit of all of you, I will give you two numbers. One is in terms of mix for Quarter 3, new is roughly about 35%, renewal is about 65%. And if you see these numbers for 9 months, new is about 33%, and renewal book is about 67%. So, in that sense, relatively for Quarter 3, the mix is about 35% and 65%. But more important than the mix, if you ask us, I think the point that we have been talking about given the underlying growth momentum playing out with respect to new vehicle sales, and there again in the same order as in I will give you Q3 numbers first, our new growth has been 12.4% and our old growth has been 7.7%, translating to an overall Growth in quarter 3 in Motor for as I said is about 9.3%. These same numbers if you look at it on a 9-month basis, the new growth has been 2.5%, the renewal growth has been 6.2%, translating to an overall growth of 5%.

So, this is exactly the point that we have been talking about. I think what we are seeing is clearly an underlying strong growth momentum coming in with respect to new vehicle sales. Having said that, that does not mean that for us renewal slash retentions are not important. I think that is equally very, very important, but what we have been able to leverage is a combination of both the underlying growth momentum with respect to new vehicle sales and then, of course, the continued focus on improving retentions as well.

Yes, absolutely. And the fact that the 9 month average is when we talk about new is 2.5% and old is 6.2%, while for the Q3 the number goes the other way where the growth has been led by new. And as in the past, Gopal has been briefing you all, new has its own set of expenses that comes, but a better loss ratio, consequent to that, it will have its impact but will have a long-term value creation for us as a Company. In the past few quarters that we have done always was driven by old growth, and if you go back to our scripts that we have said, we have said our growth is driven by old. So, that is a big transition.

It is a big plus overall for us, and we have been able to obviously garner more new in the market which has helped us to get this growth.

Secondly, if you can share the loss ratio in Health segment wise?

We are just waiting for somebody would ask, but anyway. So, on Group Health, I will first give the Quarter 3 numbers and then the 9 month numbers. First, I will give you the Q3 and 9 month numbers of last year. Group Health last year was about 97.2%, and this number for 9 months of last year was 97.7%. The same Group Health numbers for Quarter 3 this year was 90.7% and 9 month numbers is 93.2%.

For Retail Indemnity, that is the other number that generally gets asked for. This again, Quarter 3 last year, Retail Indemnity loss ratio was 65%. This number 9 months was 69.1%. For the current year Quarter 3, Retail Indemnity loss ratios are 63.1% 9-month loss ratio numbers are 67.3%.

So, again, if you look at what we have been telling the market is on Corporate Health or Group Health, generally we have maintained that we are quite comfortable running at the book with the mid-90s. That is the threshold that we have spoken about on the Corporate Health, and that is exactly how it has

Page 24 of 31 played out on a 9 month basis. And even Retail Health, the range that we have generally spoken to the market is to see if we are able to run the book at a range between 65% to 70%.

I think what we are quite excited with is the way how the growth in the book has played out and the fact that we have largely seen maybe couple of renewal cycles play through on the new product that we launched last year. I think the good news is, the experience that you are seeing on ground, is pretty much holding on to the assumptions that we penciled in when we launched this.

And lastly, sir, on the health side, we are showing very strong growth, but from a longer term perspective, how do we plan to manage the issue of old lives getting subsidized by the new lives and that lead to loss ratio deteriorating over a long period of time? Currently, we are still a young Company on the health side, but as the growth matures, let's say, five years down the line, what is the strategy to manage the overall loss ratio?

So, two, three data points. One is that the penetration of Retail Health in the country overall is 5%, okay. Most of us end up looking at Group Health as a fungible thing for Retail cover. That awareness is building up, and there is a long play available, and it is also linked to the purchasing power. If we believe that the GDP growth, the purchasing power, the income tax cut, the GST all are living this, there is a significant road available where the growth of new to the insurance or new-to-protection will keep seeing a significant traction. And also as loss ratio picks up, which is very real and you are absolutely spot on, but at the same time the expense and the commission of acquisition also goes down.

So, there is a counterplay that comes in on the aging book in terms of how it evolves and develops, better medical solutioning, all of that what comes into play, we can talk about that when we meet again, but there is a play available, and that is why we see a future as we go about it. Of course, and just to add to it, there is a good preventive play that will also become a critical factor for each one of us in our life. And as a Company, we would be very actively involved.

There is so much more available, and through our ‘IL TakeCare’, which has got good traction, in real terms, we do believe that we will play a significant role.

Right now it is all selling the policy and admission is how they interact, but that also is progressively changing. There is a good runway available, and it is all

Page 25 of 31 that sitting in our room we don't play out and simulate as to how this portfolio will behave two years, three years, five years down the line. These are part of actual actuarial modeling and we are well aware of it.

Your next question comes from the line of Swarnabha Mukherjee from B&K Securities. Please go ahead.

And secondly on the Group Employer-Employee, so you said that the loss ratio numbers look fairly encouraging. So, I just wanted to understand that this loss ratio outcome, is this more a pricing-led outcome or is this that the claims environment has become benign, which is why we are seeing this? And our growth, is this like also a function of the base effect? Because last year, I think, we were not growing this business. So, is that playing out or we have become fairly more constructive on this business than you were earlier? These will be my two questions.

Relatively, I think the earlier question that was asked in terms of the mix between new and renewal in terms of Motor, and when I gave out the data points, clearly you would have seen that the proportion of new was much higher, particularly when you looked at the Quarter 3 numbers vis-à-vis what we had seen for the whole of 9 months. And new inherently comes with a high

Page 26 of 31 cost of acquisition and hence to that extent, obviously, and more importantly, if you would have seen generally Quarter 3 is typically a period of season, and more so on Retail.

So, hence, any Quarter 3 you go back, you will always find the cost of acquisition to be relatively higher than let's say what you would have seen for other quarter. So, there is obviously an element of seasonality that plays out when you look at the commission numbers on an isolated basis, but what we would keep saying is to keep looking at it more on ideally the overall Combined ratio, which for us actually has dropped when you look at the H1 numbers relative to the industry adverse that has happened.

And the second number that we keep talking about is more on the overall expenses of management. So, even after considering the impact of the wage code, that I spoke about roughly about ₹ 55 crore, as at 9 months, I think we are pretty much there in so far as the limits that are laid down by the regulatory guidelines. I think we are very, very conscious of what we kind of source and very, very conscious of what loss experience and the cost of acquisition that comes as a part of it.

To the second point on the regulatory evolution on this, I think honestly we all have to wait and see how it plays out. I think the good news is, I think from a regulatory standpoint, the regulator has been instituting the right set of guidelines for the industry. I think couple of years back, when they introduced this overall threshold on expense of management, that was a step in the right direction of making sure that all companies, all cost put together are well within that threshold of 30%. And if you look at basis public disclosures, roughly there are still maybe almost 21 out of 34 players possibly meet the norms. There are still a lot of companies which are still in exceedance on the expense of management.

So, honestly, what we would want to see from a market standpoint is to make sure that every player in the market stays within the limit on expense of management, and then, honestly, we will wait for any subsequent changes that comes from a regulatory change, but we will be equally committed to whatever the guidelines that the regulator lays down. So, that is in response to the first

Page 27 of 31 point on both commission increase and what could happen in terms of regulatory change.

To your second point on the GHI, yes, it is a combination of both. Again, this is something that we have articulated not only in the context of GHI. In general, what we have stayed focused on every line is to see how we can remain profitable and the very fact that the loss numbers that I gave out is a testimony to the fact that we have been very, very careful and selective in terms of what risk do we want to underwrite. Equally, it is obviously a combination of both the points that you made. It is a combination of, let's say, a better price in terms of what we are comfortable underwriting.

And two, we have our own in-house claims management team. I think they do a brilliant job in terms of making sure that once a Group Health account is underwritten, how is it that we can play a very, very important role in managing the overall loss experience and at the same time giving delight in so far as customer experience is concerned, which is again reflective of the NPS scores that we have called out, whether it is Motor or whether it is Health. So, that is how the growth has been reflected. And again, we will continue to see that play out even as we head into Quarter 4 or even for the matter of fact, the next financial year.

So, is there any kind of like or where you have intermediaries has been in play commissioning inflation, anything you can talk of?

We will take the last question from the line of Nischint Chawathe from Kotak.

You have a very impressive growth in Retail Health and we can see an improvement in Retail loss ratios as well, but as we understand, typically the loss ratios in Retail products are significantly lower in the first two, three years and then they kind of move up from there on. So, I would have kind of said that this delta is because of the portfolio mix. Is it something that the new policies that are originated are ported or they are originated under different covenants or is as a cohort level profitability stable or improving or deteriorating, if you would give some color on that?

So, Nischint, again, I think, I will maintain the same response that I gave to the earlier question, which is I think the loss ratio range on Retail Health as a Company that we are comfortable running at is between 65% to 70%. So, that is the number that we will keep looking for in terms of how we are able to stay within that.

To a large part of in terms of sourcing, I think, honestly, what we want to do is in line with, let's say, some of the discussions that even the government has been doing to increase health care or increase health care penetration consequent to some of the reforms that they have done is to improve penetration at large.

So, hence, I think where we are largely expanding our distribution reach, which is what we put out also as a part of the opening transcript to say that even on health, we are seeing, let's say, an increase in tier 2, tier 3 cities contributing, and these are, as we said, new-to-insurance.

So, hence, to that extent, so far as we are concerned, we would want to continue to expand by acquiring a lot many more new-to-insurance customers, and to, and more importantly, the earlier point that I said in terms of our ability to continue to retain our own customers is something that we are very much focused on. So, it will be a combination of those two is what will continue to drive growth in the Retail Health book.

And Nischint, just to add to what Gopal is saying, see, we have also transformed our own journey, right? And we are a multi-line, multi-product Company. For us, whether the customer comes from the root of Motor or from Health, we are seeing it from a comprehensive one-stop solution. We were underballed in our offering for a number of years as far as Retail Health is concerned and we know that going in, as we move along, while we all know that the loss ratios moved upward as we age and that is the truth which I don't see would change, but at the same time, you also know if you are comprehensively dealing with this customer, the Motor loss ratio also goes down, I mean, just to share with you. So, it is a very clear mix and we are very well placed as a multi-product, multi-line company.

So, what we are seeing is getting a good customer on board and then working with them on a lifetime profitability. So, the math is what plays out vis-à-vis what you see because at times you will see only Health, at times you will see only Motor. But what we look at it is in a far more comprehensive offering and with a 2.9% market share, which was just probably 18 months back for us to be a 4-4.5% where we stand as we exit Quarter 3, it is just helping us to build a very well rounded practice.

I am not saying it was not well rounded, but Health in particular was always in a stage which was driven by GHI and underballed on this part. We see this as a toggling part and we see it is a very significant play in our scheme of things.

That is why we have got invested and we stay positive. And in our business, it is always possible that one or two lines will have a problem and COVID happened. Health was all over the place. But Motor kind of saved the day for us. So, that is the way the portfolio gets balanced and that is where we end up talking about what is it that we can generate as an ROE.

That is very comprehensive. Just squeezing a last one. I am not sure if you mentioned this, but in case of Health, there is the input tax credit loss because of GST exemption. So, how are you dealing with that? Are you sharing it with the distributors or are you absorbing it? Is that one of the drivers for high expense ratios?

So, clearly, yes, we will have to realign our cost structure and this is what we have done. The benefit in totality of GST rationalization has got passed on to the customers, and we had the benefit of, as the volume grows for us, in every line of business, Motor or Health, economies of scale will kick in. We have a large Health practice as a Company which is in combined from the Employer- Employee as well as Retail Health. So, definitely we will do what is it required to rationalize it and serve the customer appropriately, yes. Are you sharing it with the distributor?

Yes, of course, we have. The industry has shared. It is not only about us. We all of us on the general insurance in the Retail Health have and then the increased volume is not impacting the income of the distributor per se. so, there is already a counterplay which is visible which can be seen in terms of the growth. So, it is not that it is one channel which is getting impacted. Comprehensively, we are all able to do better business. So, yes, it's got passed on.

We have also rationalized our cost structure because both part is required and today's technology and so much which is going on, which we have not spoken, but we can talk about it when we sit one-to-one, is helping us also to reduce cost per transaction.

But I don't know, when you see the script which I spoke about as to how we have been able to use bots to get our digital part of serving, DIY serving significantly up vis-à-vis the operator handling it, which is driven by a lot more inconsistency and time consumption which can happen. So, there is so much that is happening. So the cost part will go down. So, we will be able to manage it on this front very easily. Perfect. That is very reassuring.

Great. Thank you so much for joining in and yes. Thank you, and have a great 2026. Thank you so much.

Thank you. On behalf of ICICI Lombard General Insurance Company Limited, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.