ICICI Lombard General Insurance Company Limited (NSE: ICICIGI) Q2 2025 Earnings Call dated Oct. 14, 2025
Corporate Participants:
Sanjeev Mantri — Managing Director & Chief Executive Officer
Gopal Balachandran — Chief Financial Officer
Analysts:
Prayesh Jain — Analyst
Madhukar Ladha — Analyst
Sanketh Godha — Analyst
Nidhesh Jain — Analyst
Avinash Singh — Analyst
Shreya Shivani — Analyst
Neeraj Toshniwal — Analyst
Presentation:
Operator
Good evening, ladies and gentlemen. A very warm welcome to the ICICI Lombard General Insurance Company Limited’s Q2 and H1 FY 2026 Earnings Conference Call. From the senior management, we have with us today Mr. Sanjeev Mantri, MD and CEO of the company; Mr. Gopal Balachandran, CFO; Mr. Anand Singhi, Chief Retail and Government; Mr. Girish Nayak, Chief Technology and Health Underwriting and Claims; Mr. Sandeep Goradia, Chief Corporate Solutions, International, and Bancassurance; and Mr. Gaurav Arora, Chief Reinsurance, Underwriting, and Claims for Property and Casualty. Please note that any statements/comments made in today’s call that may look like forward looking statements are based on information presently available to the management and do not constitute an indication of any future performance as future involve 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. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Sanjeev Mantri, MD and CEO, ICICI Mumbai General Insurance Limited. Thank you and over to you, sir.
Sanjeev Mantri — Managing Director & Chief Executive Officer
Thank you. Good evening to each one of you. Thank you for joining the earnings conference call of ICICI Lombard for quarter two and H1 financial year 2026. I would like to commence with a brief overview of the recent economic and industry trends, which have 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 half ended September 30. During the quarter ended June 2025, the Indian economy sustained its robust growth trajectory registering a GDP growth of 7.8% marking a five-year quarter high and surpassing expectations despite global uncertainties. The sovereign credit rating upgrade by S&P Global coming after 18 years reflects enhanced confidence in India’s economic fundamentals, fiscal prudence, and related policies. Following on the heels of the 100 basis repo cut and targeted income tax incentives, the government has now unveiled a landmark overhaul of the GST framework which is expected to turbocharge the consumer sentiment.
By rationalizing rates and simplifying compliance, the reforms are expected to make essential goods and services more accessible and affordable. This is expected to unlock stronger broad-based private consumption and accelerate economic activity. Collectively, these three policy actions are projected to inject nearly INR2,200 billion to INR3,100 billion into the economy. More importantly, these path breaking reforms are expected to provide a significant boost to the non-life insurance sector. The exemption of GST from individual health insurance premium will make healthcare protection more affordable for households and is expected to increase the lives covered. In addition, the rationalization of GST rates in the automobile sector has lowered the overall cost of vehicle ownership. We truly believe that this will increase private mobility enabling more Indians to own vehicles and encouraging upgrades to premium models. In line with our customer-first philosophy, we are committed to passing the complete benefit of lower GST rates to our policyholders.
In conjunction with the above reforms, I would like to update on the quarter two 2026 numbers and dwell on the trends observed along with their impact to the general insurance industry. The health segment continues to remain the largest contributor to the industry and accounts for almost 40% of the GDPI mix in H1 of 2026. While the market continues to be moderated due to the 1/n accounting norm, post September 2025, we have witnessed a significant uptick in the retail indemnity segment of the business. We remain confident that more individuals and families will continue to enter the health insurance fold and expand their coverage. Now coming to the auto sector. In Q2 2026 basis the data published by FADA, auto industry has grown by 1.3%. The private car segment grew by 2.9% and the two-wheeler segment has seen a modest growth of 0.5%. However, for the month of September 2025, private car sales grew at 5.8% and two wheelers at 6.5% compared to September 2024.
Notably and more importantly, for the first nine days of Navratri period, the private car and two wheelers growth stood at 34.9% and 36%, respectively, when compared to the Navratri period for 2025, which is significantly positive even after adjusting for pent-up demand. These trends coupled with our dominant presence in the OEM space give us confidence for a positive momentum in the second half of the year. While the global economic environment remains volatile and uncertain, India’s strong macroeconomic fundamentals supported by a pro-consumption policy stance, we are expected — which are expected to act as a buffer and continue to drive domestic economic momentum. Given the supportive regulatory environment, we expect general insurance industry to sustain its growth trajectory over medium to long term. Now coming to the Industry performance for the period ended September 30, 2025. The general insurance industry reported a GDPI growth of 7.3% for this period. Excluding crop and health segment, the GDPI growth stood at 10.5% for the referred period H1 2026.
Speaking of specific segments within the industry, The commercial segment reported a growth of 14.2% for the period ending H1 2026. The growth was majorly driven by the fire line of business, which witnessed a robust increase of 20.5% during the referred period and the same contributes to more than 50% of the commercial business. The motor segment growth for the industry stood at 7.6% for the period H1 2026. This segment continues to face significant pricing pressure as reflected by higher industry combined ratio for motor line of business. However, as also spoken already, with the current momentum, we expect H2 of 2026 to reflect improved growth levels vis-a-vis the first half of the financial year. The health segment, including mass health, grew by 7.8% for the period ending H1 2026. Within this, the group line of business grew at 8.9% for H1 2026 whereas the retail health growth stood at 9.3% for H1 2026 impacted by the 1/n accounting norm.
Speaking on the underwriting performance of the Industry. Overall, the combined ratio for the industry deteriorated from 113.9% in quarter one financial year to 115% in quarter one 2026. The overall combined ratio for private players remained flat at 110.8% for the period quarter one 2025 vis-a-vis 110.7% for quarter one 2026. Combined ratio for the motor line of business continues to remain elevated at 125% for quarter one 2026. Our continued emphasis on profitable growth delivered a lower combined ratio of 102.9% in quarter one 2026, over 12 percentage points better than the industry average. I will now proceed to present our company’s performance across key business segments for the period H1 2026. The company reported a de-growth of 0.5% in GDPI compared to the industry growth of 7.3% for the period H1 2026. However, excluding the crop and mass health segments, the company recorded a growth of 3.5% while the industry grew at 10.5% for the period H1 2026.
In the commercial line segment, our growth stood at 6.5% for H1 2026 as compared to the industry growth of 14.2% for the period H1 2026. We continue to drive profitable growth through prudent underwriting, judicious risk selection, and through our multi-channel distribution. While growth in the fire segment in quarter one 2026 stood at 10.3%, we have been able to steadily increase growth in quarter two 2026 to 27.3%. Specifically, in the month of September 2025, we grew at 36.4% in fire segment. We retained our leadership position in engineering, liability, and marine cargo lines of business for the period ended H1 2026. Furthermore, we continue to play the role of a risk solutions partner to our corporate customers while providing them best-in-class value-added services which helps them mitigate risks with holistic risk management solutions. In the motor segment, our growth stood at 2.2% for H1 2026 as against the industry growth of 7.6% for the period H1 2026.
While our growth in the first five months of the financial year stood at 1.3%, the month of September 2025 witnessed a sharp uptick due to the festive demand and moderation of vehicle prices attributable to the GST rate cut taking our motor insurance growth to 6.5%. In an increasingly competitive market environment witnessed over the recent quarters, we expect to maintain the growth momentum that kicked off in September while remaining focused on our journey of profitable growth underpinned by continuous distribution expansion and granular portfolio segmentation. Importantly, we continue to maintain our leadership position in this segment with a market share of 10.4% in H1 of 2026. We remain agile and are constantly taking conscious calls to optimize the portfolio profitability and as a result of these efforts, our portfolio mix for private car, two-wheeler, and commercial vehicle which stood at 52.9%, 25.3%, and 21.8% respectively for H1 2025 has moved to a mix of 54.3%, 25.8%, and 19.9% respectively, in H1 of 2026. In health segment, we grew by 4.2% for H1 2026 as against the industry growth of 7.8% for the period on a 1/n basis.
Our retail health business demonstrated strong growth of 25.2% for H1 2026, significantly outpacing the industry growth of 9.3% as of H1 2026. Consequently, our market share has improved from 3.2% in H1 2025 to 3.7% as of H1 2026. For the month of September 2025, company has crossed 4% market share in retail health and this has happened for the first time. This performance has been driven by ongoing product innovation and sustained investment in strengthening our retail health distribution capabilities. This segment is expected to see an upward trajectory due to the GST reforms. The group health segment recorded a degrowth of 0.6% for H1 2026 over H1 2025 with our market share being 8.7% as of H1 2026. The observed degrowth is attributable to a decline in business generated from the health benefit product on account of muted disbursements in the unsecured and microfinance sectors.
However, on the overall group health portfolio, we continue to maintain a disciplined approach and in the month of September in particular, we have grown at 10.5% as compared to industry degrowth of 1.8%. I would also like to apprise you of certain strategic initiatives that continue to drive operational excellence and customer-centricity across the organization. IL Sahayak has further strengthened on-ground claims support for our health customers. In H1 of 2026, the initiative touched over 58,000 customers, up from 34,000 in the same period last year. We received feedback from over 22,000 customers in H1 of 2026. 94.4% rated their experience as exemplary, which has given us 4.5 as a rating over 5 highlighting the support during claims processing and assistance with hospital coordination. This reaffirms our focus on best-in-class service to our customer during the moment and that is all that matters.
Our retail health claim settlement ratio within 30 days stood at 99.6% for H1 2026 placing us among the industry’s top performers and underscoring our commitment to prompt efficient claim servicing. The company launched Differentiated Service Desks in June 2025. These desks provide tailored servicing for two priority customer segments, senior citizens and high product density customers. By identifying these profiles at the point of contact and routing them to specialized customer relationship managers, we ensure conversations are empathetic, personalized, and value driven. Over 96,000 calls were handled between June to September under this initiative generating nearly 3,300 cross sell opportunities. Our belief is that differentiated care simultaneously builds loyalty and long-term value. Our IL TakeCare app, a one-stop solution for insurance and wellness needs, has now crossed 18.4 million downloads reflecting growing customer engagement and digital adoption.
The gross written premium earned from the IL TakeCare app during the period H1 2026 was INR2,088.2 million vis-a-vis the premium earnings for H1 2025 which stood at INR888 million. We have continually enhanced our efficiency levels in motor claims. Our Preferred Partner Network serviced 75.1% of our non-OEM claims for quarter two 2026, up from 72.8% in quarter two 2025. Furthermore, in the motor insurance own damage segment, 96.4% of our total claims were paid within 30 days for H1 2026. If we look at the industry numbers for the period quarter one 2026, the same stood at 82.4%, clearly highlighting ICICI Lombard’s superior claims settlement practice. Our unwavering focus on putting the customer first continues to reflect in our Net Promoter Score. For quarter one 2026, we recorded an NPS of 72 for health claims and 66 for motor claims demonstrating strong satisfaction levels and reinforcing our position as a customer-centric organization.
We continue to demonstrate strong resilience in the face of rapid evolving industry dynamics, underscoring our unwavering focus on delivering sustainable and long-term profitability. Our strategic direction is firmly rooted in our One IL, One Team philosophy, which promotes collaboration, operational excellence, and a unified approach across the organization. In conclusion, GST and other regulatory reforms being positive for the general insurance sector, we are well positioned to ride this momentum responsibly scaling our reach, sharpening our value proposition, and converting a more supportive demand environment into sustained high quality performance.
I will request Gopal to take you through the financial numbers for the recently concluded quarter and half year.
Gopal Balachandran — Chief Financial Officer
Thanks, Sanjeev, and good evening to each one of you. I will now give you a brief overview of the financial performance of the recently concluded quarter and half year. We have uploaded the results presentation on our website. You 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 IRDAI. Hence, H1 2026 or for the matter of fact even quarter two 2026 FY, numbers are not comparable with prior periods. Please refer our investor presentation for further details. Gross written premium of the company was at INR151.11 billion in H1 2026 as against INR148.79 billion in H1 FY ’25, a growth of 1.6%. GDPI of the company was at INR143.31 billion in H1 FY ’26 as against INR144.09 billion in H1 FY ’25, a degrowth of 0.5% against the industry growth of 7.3%. Excluding crop and mass health, GDPI growth of the company was at 3.5% as against industry growth of 10.5% in H1 FY ’26.
GDPI of the company was at INR65.96 billion in Q2 FY ’26 as against INR67.21 billion in Q2 FY ’25, a degrowth of 1.9% against the industry growth of 5.9% for the same period. Excluding crop and mass health, GDPI growth of the company was at 3.5% as against the industry growth of 9.8% in quarter two FY ’26. Our GDPI during the quarter was mainly driven by growth in the preferred lines of business. The overall GDPI of our commercial lines segment grew by 6.1% to INR15.84 billion in Q2 FY ’26 as against INR14.93 billion in Q2 FY ’25. On the retail side of business, GDPI of the motor segment was at INR25.11 billion in Q2 FY ’26 as against INR24.82 billion in Q2 FY ’25 registering a growth of 1.2%. The advance premium number was INR39.13 billion as at September 30, 2025 as against INR38.07 billion as at June 30, 2025. GDPI of the health segment was at INR16.49 billion in Q2 FY ’26 as against INR15.29 billion in Q2 FY ’25 registering a growth of 7.8%.
Our agents, including the point of sale distribution, count was 1,47,408 as on September 30, 2025, up from 1,43,675 as at June 30, 2025. During the quarter, the industry witnessed multiple CAT events namely floods in various parts of the country thereby impacting our combined ratio which was 104% for H1 FY ’26 as against 103.2% for H1 FY ’25. Excluding the impact of CAT losses of INR0.73 billion in H1 FY ’26 and INR0.94 billion in H1 FY ’25, the combined ratio was 103.3% and 102.2% respectively. Combined ratio was 105.1% in Q2 FY ’26 as against 104.5% in Q2 FY ’25. Excluding the impact of CAT losses of INR0.73 billion in Q2 FY ’26 and INR0.94 billion in Q2 FY ’25, the combined ratio was 103.8% and 102.6%, respectively. Our investment assets during the quarter rose to INR562 billion as at September 30, 2025, up from INR554.53 billion as at June 30, 2025. Our investment leverage net of borrowings was 3.57 times as at September 30, 2025 as against 3.74 times as at June 30, 2025.
Investment income was at INR25.38 billion in H1 FY ’26 as against INR22.52 billion in H1 FY ’25. On a quarterly basis, investment income was at INR12.49 billion in Q2 FY ’26 as against INR11.24 billion in Q2 FY ’25. Our capital gains net of impairment on investment assets stood at INR6.16 billion in H1 FY ’26 as compared to INR5.21 billion in H1 FY ’25. Capital gains net of impairment on investment assets stood at INR2.36 billion in Q2 FY ’26 as compared to almost number of INR2.37 billion in Q2 FY ’25. Our profit before tax grew by 22.3% and stood at INR20.71 billion in H1 FY ’26 as against INR16.93 billion in H1 FY ’25 whereas profit before tax grew by 17.2% at INR10.77 billion in Q2 FY ’26 as against INR9.19 billion in Q2 FY ’25. Consequently, profit after tax grew by 22.9% and stood at INR15.67 billion in H1 FY ’26 as against INR12.74 billion in H1 FY ’25. PAT grew by 18.1% at INR8.20 billion in quarter two FY ’26, up from INR6.94 billion in Q2 FY ’25. Return on average equity was 20.8% in H1 FY ’26 as against 20.3% in H1 FY ’25.
The return on average equity for the quarter two FY ’26 was 21.4% as against 21.8% in Q2 FY ’25. Solvency ratio was at 2.73 times as at September 30, 2025 as against 2.7 times as at June 30, 2025, continued to be higher than the minimum regulatory requirement of 1.5 times. Solvency ratio was at 2.69 times as at March 31, 2025. The Board of Directors of the company has declared interim dividend of INR6.5 per share for H1 FY ’26 as against INR5.5 per share for H1 FY ’25. As I conclude, I would like to reaffirm that we continue to stay focused on driving profitable growth and sustainable value creation while protecting the interest of our stakeholders and customers at all times.
We’d be happy to take any questions that you have. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. [Operator Instructions] Our first question comes from the line of Prayesh Jain from Motilal Oswal. Please go ahead.
Prayesh Jain
Yeah. Hi everyone. Congrats on a decent set of good numbers. Firstly, just on this GST impact, right, the input tax credit will not be available for the health insurance piece, and so what was the impact of that and whatever the sales would have happened in 2Q? And secondly, how — going ahead how are you kind of trying to offset this whether through commission cuts or balancing it across the product — other products that you have? That would be my first question.
Gopal Balachandran
So Prayesh, I think September is just about nine days and therefore to that extent, I think it’s honestly too premature to kind of call out in terms of what has been the impact. I think the key thing to look out is what we kind of spelt out as a part of the opening script. I think what we are seeing on ground, I think the demand momentum seems to be very, very promising and to that extent is what we have kind of clearly got reflected as part of clearly increased volume of retail health policies getting sourced. I think the key to look for is how do we see, let’s say, things playing out over the next couple of quarters. We are very very optimistic in terms of how this particular reforms is likely trying to play out. And in that context how we have kind of looked at even let’s say possibly the eventual impact on any input tax credit on sourcing. I think obviously to that extent, we have kind of which is there. I think we have clearly communicated that it will be a part of the overall distribution cost in terms of how do we kind of manage the cost of sourcing. So in that context is what even any related input trader will be part and parcel of that. That’s the way how we are looking at it. But more importantly, as I said, I think what we are quite excited and optimistic is the relative scale up that one expects consequent to this reform that has got announced.
Sanjeev Mantri
Yeah, absolutely. Prayesh, just to put across, we’ve been already discussing debating in terms of what the cost can be; can it be 12%, can it be this. Eventually this stimulus which has come has been the biggest marketing in terms of letting the customer every Indian know that how important health insurance is. And this move is very significant in terms of managing our cost structure, something which — any which way there was always a need. I think the industry is working to make it much more reasonable. And it’s also a win-win because the volumes that will come on account of that will also see that our partners have enhanced income which will come. So there is a clear play which is evident and for us as a multiline company more so, it puts us in a very comfortable spot because we’ve got other lines also. This is one comprise the whole thing and we have seen tremendous tailwind. You can see our own growth numbers on indemnity, which has been way ahead of the industry and this further stimulus that comes in also gives us at an ability to scale at a much faster speed with a responsible underwriting. So the guardrail which will continue to guide us is that we underwrite in a responsible manner and then the rest should flow out and get evened out with the volumes that will come through it.
Prayesh Jain
Sure. But just further on that, Gopal, any impact that you would have seen in due to — I understand it’s just for nine days, but would that have elevated the cost ratios in this quarter in 2Q for the health segment? And also are you looking to increase the distributor? Are you looking to cut the distributor commissions? Any communications or any negotiations that would have been started in that regard?
Gopal Balachandran
I think as we keep saying, Prayesh, I think when you look at the sourcing objective particularly in the context of retail health, we have always kind of looked at in the context of the combined ratio of the book that we’re kind of wanting to write at and there I think really if you see even on the loss experiences, pretty much even if you look at quarter two or even for the matter of fact half year, I think the loss experience has pretty much played out in line with our expectations. So hence to that extent, I think the portfolio is kind of doing well. And linked to that is your cost of sourcing, which is obviously a part and parcel of the overall combined numbers, which is what I called out. At this point of time, the way we are looking at is I think whatever cost that we would incur as a part of sourcing will pretty much factor in also the related possible loss that one is expected to see consequent of any loss of input trade that we will see in the context of retail health.
But having said that, I think what is more relevant is what even Sanjeev was articulating. I think we will be kind of — pretty much kind of pleased to look at how things will play out for quarter three and this is something that even the distributors kind of seeing the impact and the benefits. The increased volume automatically translates into a better revenue stream for them. And therefore when they look at their overall distribution income, they would kind of clearly realize that they are clearly far better off in terms of where they are. And at this point of time, no significant changes to, let’s say, whatever our overall cost of sourcing has been. I think anything that we would incur as a cost of sourcing would also include the elements of input tax disallowance possibly that we will see on the retail health book.
Prayesh Jain
Got that. Gopal, the other question was if I look at the NWP to GWP, that ratio has inched up. Any change in reinsurance strategy which has kind of moved that or it’s just a product mix kind of a change?
Gopal Balachandran
You have the answer, Prayesh. And so therefore to that extent is what we keep saying. I think our businesses is obviously kind of cyclical on different lines of businesses. As you would have seen in quarter two last year, I think we did have a relatively higher proportion of crop mix which obviously has a relatively lower retention. Compared to that if you would have seen quarter two of this year, I think our proportion of crop is definitely much lower and hence to that extent and therefore to that extent and the fact that retail health for us has kind of done very well, I mean it was Q2 of last year is when we had kind of largely launched elevate as a solution and through the next 12 months as we speak is where we have been able to kind of witness an improvement in sourcing and which is what we spoke about also market share in the month of September exceeding more than 4%. So given the fact that that has also kind of done well where predominantly we kind of end up retaining a large part of the risk on the net. So hence short answer, no change to the thought process in terms of reinsurance philosophy, more the outcome on the net premium to gross premium is purely a function of the change in the business mix that one has seen between quarters.
Prayesh Jain
Last question.
Operator
Sorry to interrupt, Prayesh, sir, may we request you return to the question queue for follow-up questions?
Prayesh Jain
Thank you.
Operator
Thank you. [Operator Instructions] Our next question comes from the line of Madhukar Ladha from Nuvama Wealth Management. Please go ahead.
Madhukar Ladha
Hi. So a couple of questions on my side. First, if I look at the commission ratio that’s inched up significantly in Q2 so probably more product mix and is it also because of longer-term products that you’re writing? Is it because of that? Second, on motor od we see an inch up in the loss ratio and very high competitive intensity and we’re losing sort of market share also in that line of business. So with the GST cut, what would you expect from here? Should we expect sort of the competitive intensity to come down and some market share recovery happening out there and why are our loss ratios going up despite we being sort of more conservative in this line of business?
Gopal Balachandran
So I think on the first part, I think again as we keep saying, one is what you rightly answered and what I kind of talked about, I think there is always an element of change in the business mix in terms of what you look at in quarter two versus let’s say quarter one or even for the matter of fact when you look at even vis-a-vis a comparable quarter. But the larger way that we have always looked at is in the context of the overall excellence of management, which as a company as we keep saying, is something that we are very, very conscious of. And even if whether you look at it for on a half yearly basis, I think our expense of management numbers are well within the limits of the 30% threshold that one has put out. So hence in that context, I think we are pretty much on course in terms of what we want to do.
And again at the end of the day, commission ratios again whichever way you look at it will also be a function of what mix of business do we end up doing more in terms of new renewal and in the context of retail health that we spoke about, I think that’s kind of doing well in terms of the overall loss experience. A large part of the book that we have sourced also comes in the context of a new growth and that would entail some amount of cost of sourcing. So a lot of factors. But if you ask us, I think what we are quite comfortable with is the fact that I spoke about in the context of making sure that we stay within the guarded rail of within the 30% limit on overall expense of management. To your second point…
Madhukar Ladha
Sorry. Is there any impact of GST ITC amount?
Gopal Balachandran
Which is what I called out. I think at least so far as quarter two is concerned, which is why I kind of also responded to Prayesh’s question. I think at this point of time, honestly the commission ratio does not have any factor — any significant impact at least insofar as the impact of GST is concerned. To the second point on the motor own damage loss ratios, I think this is something that I keep talking every quarter. I think we should keep looking at one is of course is quarter to quarter a right comparison? Honestly, as we keep saying, there are various factors or nuances that go into the loss ratio numbers. And secondly, as we have always mentioned in the past, I think the better way to look at is more in terms of motor as a category and that to more on ideally on a year to date basis. And if you recollect, just to refresh, the overall motor loss ratio range that we have spoken about to the streets have been in the range of 65% to 67%. And even if you look at the first half numbers for overall motor, I think the overall loss ratio stands at, if I remember the numbers correctly, it’s about 66.6%. So it’s well within that range of 65% to 67% in terms of what we want to operate and hence — but yes, between periods there can always be, let’s say, some bit of volatility to the overall loss numbers. But honestly I think what we are again comfortable with is within the range that one is operating at.
Sanjeev Mantri
And also Madhukar, just to add to this for you and everybody else who are on the call is also the configuration of business. If you see relatively if the new business is on the higher side, the loss ratios do tend to get lower while the old one, the loss ratios are high. So there’s a mix that comes in and you know that the growth, if we leave aside what happened prior to September 22, was very mutated. So we were seeing lot more growth coming from the old vehicle where loss ratio can be a bit more elevated. So that element also which gets played out and there is also quarter two little bit of cat part that comes on to play which makes the loss ratios look elevated. So there’s a combination which has got us. We don’t see any challenge. We continue to maintain our discipline and we are excited about the fact that the industry may probably see record numbers in the coming quarter on new sales.
Madhukar Ladha
Okay. Yeah. And just on the competitive intensity…
Operator
Sorry to interrupt. May we request to return to the queue for follow-up questions please as there are several other participants waiting for their turn. Thank you. Our next question comes from the line of Sanketh Godha from Avendus Spark. Please go ahead.
Sanketh Godha
Yeah. Thank you for the opportunity. Gopal, given GST cut, IDV will come down. So it is fair to assume that your motor OD loss ratios invariably will go up because of the vehicle GST cuts? And do you think the ROE depletion which could happen because of the higher loss issues in motor OD, can it be more than compensated or at least compensated by the extra float either in the form of advanced premium or the premium you’ll collect because of the new sales will be good enough to see the positive above on the profitability? And related to that on TT side, given GST on CV has been reduced and you have input credit benefit so indirectly it is kind of a price hike to you guys. So just wondering that given we were never such a strong player in CV segment, given we’re seeing a bit of uptick in CV segment in second quarter compared to 1Q, whether you change a bit of strategy on CV going ahead or not? So that’s largely the question I have on motor piece.
Gopal Balachandran
Yeah. I think possibly, Sanketh, you have actually answered what you wanted to ask. So therefore to that extent, I think pretty much what you kind of asked. I think one, I think on the motor on damage side again, let’s look at it in the context of what’s happening on ground. I think there seems to be clearly a lot of festive cheer. There clearly is an element of pent up demand and therefore pretty much similar to what I spoke in the context of health. I think what we are again — and this is there in terms of the data that was released by Fada which is what we kind of also put out as a part of the opening transcript. Clearly there seems to be renewed momentum on ground in terms of increased volume of vehicle sales and that’s an area from an ICICI Lombard standpoint where we clearly have an edge and that’s the reason why we are specifically also called out to say that relative to what one had experienced in the first five months, when you look at particularly for the month of September, I think we have been able to kind of get back a lot of our lost momentum.
And hence to that extent, I think we believe we are positively placed insofar as the opportunity for the future is concerned. On the impact on the possible reduction, of course as we have again articulated as a responsible institution, we will obviously make sure that whatever is required to be passed on to the consumers in the form of the reforms, that has been entailed pretty much on course to make sure that all of those things will be completely passed on and that’s what we have done. And of course as you rightly said, there are those various factors depending on what volumes or what type of vehicles are customers wanting to buy will be a factor to determine how some part of the impact will get played out. Our own efficiency that we can bring about in the context of the business mix that we write will also be an element that will kind of to some extent take care of some of the possible impact that one would see on the book assuming we don’t do anything on the drop in the value of the vehicle.
And three is obviously again a function of the claim efficiencies. I think as an organization, again we have time and again spoken about the various claim intervention initiatives that we have kind of worked on. So all of this, which is why we called out even at the time when these announcements were made, we had said that all said and done I think from an ICICI Lombard standpoint, I think we should be able to kind of take some of these impacts within the overall scale of operations. I think the key thing to look out for will be how does things play out over the next couple of quarters which is where we are kind of very, very positive and optimistic in terms of how do we see things playing out on ground. On the impact side, I think we think this is something that we should be able to kind of manage within the overall scale of our business.
Sanketh Godha
Got it, Gopal. And lastly, on data keeping, this reinsurance accepted business INR462 crores what we did in second quarter or even a much bigger number in first half, it is largely related to which line of business and this number will continue even in second half?
Gopal Balachandran
So again Sanketh, this question does keep coming to us at different time points I think what we have clearly maintained is pretty much similar to what we have kind of talked about in the context of crop. I think these are opportunistic calls that we take purely from an underwriting standpoint. Whatever fits within our underwriting acceptances criteria is what we end up writing whether it is for direct or even for the matter of fact as reinsurance acceptances. But each of these, even if you look at it on a full year basis, for example last year, our overall proportion of reinsurance acceptances to the total volume of gross premiums that we would have underwritten as a company has been clearly a single-digit number. So when you start looking at some of these numbers, particularly vis-a-vis a quarter, I think there can always be aberrations when you start looking at in the context of percentages. But if you ask us from a thought process or, let’s say from a philosophy standpoint, it’s purely guided by the underwriting filters that we kind of put in terms of risk acceptance and do we expect each of these to suddenly become a very large proportion of our overall gross premium? The short answer is no. It will be well within the defined limits that we have as an institution.
Sanketh Godha
Got it, Gopal. Thanks for the answers.
Operator
Thank you. Our next question comes from the line of Nidhesh from Investec. Please go ahead.
Nidhesh Jain
Thanks for the opportunity. My question is on retail health insurance. So can you share loss ratios in the retail health insurance and group health insurance for the quarter? And second is what is the share of agency and non-agency channel in the retail health insurance? I’m trying to understand how we have been able to show pretty strong growth in retail health insurance over last one year.
Gopal Balachandran
I was just waiting for this question to be asked in the context of the split between loss ratios on retail indemnity and let’s say the corporate health. So I’ll just first give the numbers for quarter two last year and first I will give the group health or let’s say the employer-employee health numbers. Q2 last year employer-employee or group health numbers was 98% on the loss ratio. This number for quarter two of the current year stands at about 93.7%. And on a half yearly basis, again employer-employee loss ratio H1 last year that number was 98%. This number for H1 of the current year is at 94.6%. That’s employer-employee health. On retail indemnity, again in the same order, quarter two last year the loss ratio was 70.3% and H1 of last year was 71.4%. And if you look at quarter two of the current year, the loss ratio on retail indemnity stands at 65.4% and on a half yearly basis it stands at about 69.7%.
Now just to kind of again refresh, On the retail indemnity book, pretty much similar to what I spoke about on overall motor where to the streets we have been generally talking about a loss ratio range that you are comfortable at 65% to 67%. Even on retail health indemnity, the range that we have been speaking about is to maintain the loss ratio in the range of 65% to 70%. And if you see on a half yearly basis on the retail health indemnity book, the loss ratio is within that range of 65% to 70%. So that’s where we are in terms of the split of the loss ratio numbers. On the split of the business between agency and other than agency, generally the proportion of the book that we do through agency is about two-thirds roughly and the rest of the book will be the balance one-third.
Nidhesh Jain
And both channels are growing at a similar pace or…
Sanjeev Mantri
Agency has been relatively faster at this point of time. But it’s both of them are in very high zone because overall growth itself of the book is in the 50s range if you look at NBC. So there’s significant traction that we see and we are excited about both the opportunities, whether agency or non-agency.
Nidhesh Jain
Sure. Thank you. That’s it from my side.
Operator
Thank you. Our next question comes from the line of Avinash Singh from Emkay Global. Please go ahead.
Avinash Singh
Hi, good evening. Thanks for the opportunity. Two questions. First, can you please sort of provide some color on your market share in motor in terms of new and renewal? I mean I’m asking if I understand correctly, I mean your pricing is reasonably higher than aggressive competitors and you have a kind of a strong acceptance at the dealer points. So in that context I wanted to understand if there’s a wide divergence in market share in the new vis-a-vis renewal market in motor. That’s one. Second now with this GST thing in [Indecipherable] in terms of growth driver at the industry level, I mean do you think industry at the aggregate level going to return to a strong growth phase probably in the next year or so? Because I mean in the recent year motor vehicle sales have been one kind of pinpoint. Then you also had some of these schemes fading out. Of course does not matter for you much, but like crop insurance and all that has been seeing a bit of a decline. So at the aggregate level, what could be in terms of the value terms premium driver for the industry probably in FY ’27? Thanks.
Gopal Balachandran
So Avinash, honestly I think what we can talk about is more at an aggregate level in terms of motor as a category in terms of market share which is there. If you look at the first half of last year, we had a market share of roughly about 10.9% and if you look at the first half of the current year, we have a market share of roughly about 10.4%. This is both half year to half year. Within that, I think we keep kind of toggling between new and renewal. So honestly I think too difficult to kind of call out specifically what could be the market share because that could keep changing depending on what kind of a mix of the portfolio that one wants to kind of underwrite. So that’s the reason why we are not specifically calling out in terms of what would be our market share between new and what would be a market share between the renewal book. To your second point on do we expect the demand on ground to sustain even for the next year? I think honestly we will obviously play through the quarters in terms of how one sees demand playing out, which is what we called out even on the opening transcript.
I think the good part is I think the pace of reforms that has been exhibited across the various regulatory authorities, I think has clearly set the tone on ground and that’s also kind of reflective in terms of the outcomes that one has seen in the initial few days of let’s say the quarter ended September. And the good news is I think I’m sure all of you are also equally tracking in terms of what’s happening on ground, particularly with respect to the volume of vehicle sales that’s playing out. The initial indications even if one was to see in the month of October, I think the demand definitely is kind of continuing and therefore there is a clear expectation with some of these actions/reforms that has been exhibited, as I said, by the various regulatory authorities looks to be very, very kind of conducive for the momentum to kind of sustain over the next few quarters. But honestly, we will keep coming back to all of you in terms of what do we see on ground across various quarters. But at least clearly the — as what one said, the tone that has been set clearly looks quite promising when you look at the road ahead.
Sanjeev Mantri
Absolutely right. And even if you look at in a bit of — you get to the second layer of number, the total incremental accretion in motor has been around INR3,300 crore and you see the distribution of that pie, you realize that one PSU itself has picked up more than INR1,000 crores. So it’s been a very skewed one where things have moved not in a distributed manner and whenever something like this is there, we will have to be very, very picky. We still continue to be Number 1 player as far as motor category is concerned. We do acknowledge the fact that there’s a loss of 0.5%. It’s more tactical where we do believe if it’s not making sense, we will let it pass. But we also are aware that no one can keep doing something like this over sustained quarters after quarters. So we need to be patient.
And just to add on to the fact clearly yes, new is our strength and we do see tremendous tailwind and we spoke about it very categorically. Will that lead to motor industry perse showing better growth? The belief and the answer is clearly we do believe so, but it has to pan out on a more consistent basis. The only element that we want to adjust at this point of time is there was a pentup demand which also was there because post August 15, there wasn’t much happening in the market. Our math says even adjusted to that, the excitement in the market is very high and we will stay connected. I am sure those numbers are which you all are very well aware of. But we see a significant opportunity in quarter three and probably even H2 of this financial year and this should augur well for the industry even for next financial year if that’s what your question is.
Avinash Singh
Thanks. Any view on motor TP tariffs?
Sanjeev Mantri
Well, your guess will be as good as ours. We keep hearing that something is on the anvil and the industry’s demand per se on seeing some bit of a hike or adjustment or realignment of motor TP is there in every single forum and we do expect and believe that we will hear a positive news on that sooner than later.
Avinash Singh
Thank you. Thank you. Very clear.
Sanjeev Mantri
Thanks, Avinash.
Operator
Thank you. Our next question comes from Shreya Shivani from Nomura. Please go ahead.
Shreya Shivani
Yeah. Hi. Thank you for the opportunity. I just have one question. This is on the commercial segment. I mean there have been many media articles whether it be fire, marine, crop; there is increased competitive — increased competition in the segment. Now I understand that you guys are still growing quite well. However, if I look at your underwriting profit in the fire book 1H over 1H, it’s down. The underwriting profit in the miscellaneous corporate book, I mean it’s termed loss making in this 1H versus previous 1H. So is it fair to assess that there has been some impact on our book because of the competition or the price war that’s going on in the segment in spite of the growth that we’ve been delivering? That’s the only question I have.
Gopal Balachandran
So Shreya, I think again I think particularly on commercial line, the portfolio inherently is subject to an element of when you look at it purely from an absolute underwriting outcome. And the reason one is saying this is I think increasingly you are getting to experience a lot many more catastrophic events play out or as a matter of fact even if you possibly experience any large risk event, then to that extent you may possibly see the outcome of the underwriting book kind of reflecting an outcome which for a particular given period could be adverse compared to any other relative reference quarters. But having said that, I think from our standpoint, I think which is what we have been talking through, consistently our approach or thought process to writing risk has been to kind of keep looking for prudent plus profitable risk selection portfolio that’s not just across commercial lines, even across other lines of businesses. And that’s the reason why I think at an aggregate level in the initial few months, we actually have been kind of losing again some market.
But the good news is again things seems to be kind of looking up quite positively for us when you see the month of September. And hence to that extent, we continue to stay looking for profitable risk selection opportunities. Outcomes on underwriting; whether you take fire, whether you take miscellaneous corporate, or for the matter of fact anything from an absolute basis; will be purely a reflection of some of the loss events that could have got played out in that particular quarter. The real reflection is I think, as what we keep saying, on the overall commercial lines book, I think that’s a book that has inherently generated us good cash flows. It has also enabled us to kind of generate better ROE. And overall the book that we have been writing has been a decent combined ratio outcome. So that’s something from a philosophy standpoint that we stand committed. But as I said, in a given quarter or so from an absolute outcome, it will be purely a function of some of the loss events.
Shreya Shivani
So ideally, what time period should I look if I want to understand the fire performance?
Sanjeev Mantri
So Shreya, time period I think submission of quarters which is there — the past three years also if you look at where the averages can give you a very decent indication in terms of where the loss ratio resides. A quarter to quarter movement, as Gopal explained, can be very dangerous to take a call. The long and short which we can put across very confidently is there was a cat event, there was one or two large losses which is kind of reflected, but it can play out over a couple of quarters and you will see a moderation in the loss ratio overall in time to come. But the best way to look at this is dig in the past and seeing submission. If you look at last 15, 10 quarters, 12 quarters, how does the loss ratio move? You will get a very clear indication that this is what broadly the range is. In our mind, this is absolutely nothing. In fact I can share with you that the rate which is there on the risk basis, we realize more than 20% than what we used to. And I would also put across the fact that this was a lower base. Last year if you see the commentary that we had on fire, the industry was not pricing it appropriately. Some semblance had has come and that has helped each of the industry players, including ourselves. But what we tried is not on the incremental risk, but the selection of risk that we want to write and that is what can be a big differentiator over submission of quarters.
Shreya Shivani
Got it. This is very useful. Thank you and all the best.
Operator
Thank you. Our next question comes from the line of Neeraj Toshniwal from UBS Securities. Please go ahead.
Neeraj Toshniwal
Yeah. Hi everyone. So I think a lot of the data has been asked, but still to get more sense on how should one think about second half in terms of growth and combine both. Any color will be more helpful because definitely nine days have been positive. But to get a sense of because we’ll be obvious also in terms of 1/n impact which started from last 1st October which will also be a positive thing to support growth. How should one think about growth and then obviously in terms of underwriting profits and then overall profits.
Gopal Balachandran
Thanks Neeraj. Finally, hopefully from next quarter onwards, we don’t have to really kind of talk about this n and 1/n. Therefore to that extent I think for all of us, there will be one set of numbers that we will kind of start looking at it collectively. But having said that, I think if you look at the narrative that we have largely spoken, Neeraj, to all of you is that I think on ground, I think which is what we kind of have been calling out, I think we are very very excited and pleased with how some of the regulatory actions are getting translated in terms of reforms on ground and hence to that extent, I think from an ICICI Lombard standpoint, I think we are very very well poised to capitalize this opportunity of growth across streams of businesses. So hence to that extent, I think possibly the extent of market share loss that one had seen particularly over the last couple of few quarters, I think one definitely expects that particular trend line to start getting reversed.
And hence to that extent, in line with what we have been saying, we should logically start getting incremental market share vis-a-vis the industry overall growth number. That’s more from an overall growth standpoint. But when it comes to more combined ratio/ROE, I think both Sanjeev and all of us, I think in general I think what we have been talking about is to try and sustain that ROE in that range of 18% to 20%. And even if you look at it whether you look at quarter two or even for the matter of fact if you look at half year, I think we have largely been able to kind of stay around the range of 18% to 20% from an ROE. So and therefore, even as we head into the second half, I think we’ll be extremely mindful of making sure that we are able to sustain this. But all of this we will obviously keep a very, very close watch in terms of how the industry is also kind of declaring their numbers. I think we do understand that some companies have started declaring results for quarter two and we will see the directional trend on how it plays out. But from our standpoint, I think that’s it unless Sanjeev, if you want to add anything.
Sanjeev Mantri
No, no, no. I think we’ve spoken and this is well spoken. I think nothing more to add to this.
Neeraj Toshniwal
Got it. And just on bookkeeping, what is the yield right now and the duration of the book and the long-term portfolio now versus last year?
Gopal Balachandran
So the duration of the book is about 4.74 years and yield on the book YTM is about 7.39%.
Neeraj Toshniwal
And on the long-term portfolio if we have that data handy?
Gopal Balachandran
Are you referring in the context of on the business side?
Neeraj Toshniwal
Yes.
Gopal Balachandran
So on n to 1/n, I think that’s the number that we have called out separately, Neeraj, in our investor deck. I think if you look at the total long-term premium that could have got recognized as premium on a half yearly basis is roughly about INR6.2 billion and for the quarter that number stands at roughly about INR3.6 billion.
Operator
Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand the conference over to the management for closing comments.
Sanjeev Mantri
I think great. I think thank you so much for joining in. We run into festivities going forward so we would wish each one of you and your family members a great safe Happy Diwali. These are exciting times for us as an industry. While there are some questions in terms of how it will evolve, we truly believe that directionally H2 would see far more tailwinds. We will stay connected. We will — we look forward to meeting with each one of you as and when you are back with your respective holidays. Have a great time with your families and be safe, be happy. Thank you so much.
Gopal Balachandran
Thank you.
Operator
[Operator Closing Remarks]