ICICI Lombard General Insurance Company Limited
Report on the Audit of the Financial Statements
Opinion
1. We have audited the accompanying financial statements of ICICI LOMBARD GENERAL INSURANCE COMPANY LIMITED (“the Company”), which comprise the Balance Sheet as at 31 March 2026, the Revenue accounts of fire, marine and miscellaneous insurance (collectively known as ‘the Revenue accounts'), the Profit and Loss account and the Receipts and Payments account for the year then ended, the schedules annexed thereto, a summary of the significant accounting policies and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements, are prepared and give the information required in accordance with the Insurance Act, 1938 as amended, (the “Insurance Act”), the Insurance Regulatory and Development Authority of India Act, 1999 (the “IRDAI Act”), the Insurance Regulatory and Development Authority of India (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024 (the “IRDAI Financial Statements Regulations”), the circulars/orders/directions issued by Insurance Regulatory and Development Authority of India (“IRDAI”) and the Companies Act, 2013 (‘the Act') in the manner so required, and give a true and fair view, in conformity with the Accounting Standards specified under section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2021 as amended (‘Accounting Standards') and other accounting principles generally accepted in India, read with and which are not inconsistent with the accounting principles as prescribed in the IRDAI Financial Statements Regulations, IRDAI Act and circulars/orders/ directions issued by IRDAI.
i. in the case of Balance Sheet, of the state of affairs of the Company as at 31 March 2026;
ii. in the case of Revenue accounts, of the operating profit in the Fire and Miscellaneous business and operating loss in marine business for the year ended on that date;
iii. in the case of Profit and Loss account, of the profit for the year ended on that date; and
iv. in the case of Receipts and Payments account, of the receipts and payments for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters:
4. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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5. We have determined the matters described below to be the key audit matters to be communicated:
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Sr.
No.
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Key Audit Matters
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How our Audit addressed the Key Audit Matters
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1.
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Information Technology Systems and Controls (IT Controls)
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Our key audit procedures included, but were not limited to the
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related to financial reporting:
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following:
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The Company is highly dependent on its IT architecture
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We involved our IT specialists to perform procedures which
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comprising hardware, software, multiple applications,
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included, but were not limited to the following:
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automated interfaces and controls in Systems for recording,
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•
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Obtained an understanding of the Company’s IT related
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storing and reporting financial transactions.
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control environment, IT applications and databases.
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A number of independent and inter-dependent IT systems
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Furthermore, we conducted a risk assessment and identified
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are used by the Company for processing and recording
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IT applications, databases that are relevant for the Company’s
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the large volume of transactions on daily basis as part of
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financial reporting.
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its operations, which impacts key financial accounting and
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•
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For the IT systems relevant to reporting of financial information,
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reporting items such as premium income, claims, commission
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we have tested design and operative effectiveness of key IT
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expenses and investments amongst others.
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general controls over the key IT systems that are critical to
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There exists a risk that, gaps in the IT control environment could result in the financial accounting and reporting records
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financial reporting. This included evaluation of entity’s controls to ensure segregation of duties and access rights being provisioned / modified based on duly approved requests, access
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being materially misstated.
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for exit cases being revoked in a timely manner and access of
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The controls implemented by the Company in its IT
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all users being re-certified during the period of audit. Further,
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environment determine the integrity, accuracy, completeness,
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controls related to program change were evaluated to verify
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and validity of the data that is processed by the applications
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whether the changes were approved, tested in an environment
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and is ultimately used for financial reporting. These controls
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that was segregated from production and moved to production
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contribute to mitigating risk of potential misstatements caused by fraud or errors.
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by appropriate users. Where deficiencies were identified, tested compensating controls and/or performed additional substantive audit procedures as required to mitigate any risk of material
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Our audit approach relies on automated controls and
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misstatement with respect to related financial statement
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therefore, procedures are designed to test controls over
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line item.
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IT systems, segregation of duties, interface and system
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Evaluated the design and tested the operating effectiveness
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application controls over key financial accounting and
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of critical and key automated controls within various business
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reporting systems.
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processes around the software systems. This included testing
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Due to, pervasive impact of the IT systems and related
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the integrity of system interfaces, report logic for system
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control environment on the Company’s financial statements,
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generated reports relevant to the audit of premium income,
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we have identified testing of such IT systems and related
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commission expense, claims and investments, for evaluating
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control environment as a key audit matter for the current
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completeness and accuracy.
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year audit.
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Reviewed the Key audit findings of Internal Audit to assess the impact of observations and management’s response if any on financial reporting.
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Obtained written representations from management on whether IT general controls and automated IT controls are designed and operated effectively during the year.
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2.
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Investments (Refer Schedule 8 and 8A of the financial
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Our audit procedures on Investments included the following:
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statements and refer schedule 16 note 4.8 on accounting policy)
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Understood Company’s process and controls to ensure proper investments valuation and impairment process.
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The Company’s investment portfolio consists of Policyholders
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Tested the design, implementation, management oversight
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investments and Shareholders investments. Total investment
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and operating effectiveness of key controls over the valuation
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portfolio represents 77% of the assets as at 31 March 2026
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process of investments including impairment.
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which are valued in accordance with accounting policy
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Obtained independent external confirmations for investments
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framed as per the extant regulatory guidelines.
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as at balance sheet date from the Custodians and Depository
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The valuation of all investments is as per the investment
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Participants appointed by the Company to confirm the units of
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policy framed by the Company as per the requirements
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securities for the purpose of valuation re-computation.
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contained in the IRDAI Financial Statements Regulations.
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On a test check basis, recomputed valuation of different class
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The valuation methodology specified in these aforesaid
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of investments to assess appropriateness of the valuation
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regulations is applied by the Company for each class of
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methodologies with reference to IRDAI Investment Regulations
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investment which includes various measurement techniques
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along with Company’s own investment policy.
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such as amortised cost, fair value etc as further described in
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Examined movement and appropriateness of accounting in Fair
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note 4.8 to the accompanying financial statements.
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Value Change account for specific investments.
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The Company has a policy framework for Valuation and
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Reviewed the Company’s impairment policy and assessed the
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impairment of Investments. The Company performs an
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adequacy of its impairment charge on investments outstanding
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impairment review of its investments at each balance
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at the year end.
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sheet date and recognizes impairment charge when the
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Examined the rating downgrades by credit rating agencies and
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investments meet the trigger/s for impairment provision
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assessed the adequacy of impairments to various investments.
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as per the criteria set out in the investment policy of the Company. Such an assessment of impairment involves
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Evaluated appropriateness and reasonableness of methodology, assumptions and judgements used by management with
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significant management judgment.
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reference to the Company’s investment valuation and
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The valuation of these investments was considered one of the
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impairment assessment as per policy.
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matters of material significance in the financial statements
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Obtained written representations from management on
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due to the materiality of the total value of investments to the
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compliance of valuation of investments with the regulations and
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financial statements and thereby identified as a key audit matter for current year audit.
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adequacy of impairment recorded for the year.
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Information Other than the Financial Statements and Auditor’s Report Thereon:
6. The Company's Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis Report and Director’s Report and the annexure thereto but does not include the financial statements and our auditor’s report/ certificate thereon. The Management Discussion and Analysis Report and Director’s Report is expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
When we read the Management Discussion and Analysis and Director’s Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of the Management and Those charged with governance for the financial statements:
7. The Company’s Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, underwriting results, financial performance and cash flows of the Company in accordance with the Accounting Standards specified under Section 133 of the Act, read with the Companies (Accounting Standards) Rules, 2021 and other accounting principles generally accepted in India which are not inconsistent with the accounting principles as prescribed IRDAI Financial Statements Regulations, the IRDAI Act and the circulars/ orders/directions issued by the IRDAI in this regard. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the financial statements, the Management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management and Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
9. The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the financial statements:
10. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, that could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
11. As part of an audit in accordance with SAs specified under section 143(10) of the Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has an adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
• Conclude on the appropriateness of Management’s and Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern; and
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
15. The actuarial valuation of liabilities in respect of Incurred But Not Reported (the “IBNR”), Incurred But Not Enough Reported (the “IBNER”) and Premium Deficiency Reserve (the “PDR”) is the responsibility of the Company's Appointed Actuary (the “Appointed Actuary”). The actuarial valuation of these liabilities, that are estimated using statistical methods as at 31 March 2026 has been duly certified by the Appointed Actuary and in his opinion, the assumptions considered by him for such valuation are in accordance with the guidelines and norms issued by the IRDAI and the Institute of Actuaries of India in concurrence with the IRDAI. We have relied upon the Appointed Actuary's certificate in this regard for forming our opinion on the valuation of liabilities for outstanding claims reserves and the PDR contained in the financial statements of the Company.
Report on Other Legal and Regulatory Requirements
16. As required by the IRDAI Financial Statements Regulations, we have issued a separate certificate dated 15 April 2026 certifying the matters specified in paragraphs 3 and 4 of Part III of Schedule II to the IRDAI Financial Statements Regulations.
17. As required by the paragraphs 1 and 2 of Part III of Schedule II to the IRDAI Financial Statements Regulations read with Section 143(3) of the Act, in our opinion and according to the information and explanations give to us, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the accompanying financial statements and those have been found satisfactory;
b) Proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) As the Company's financial accounting system is centralized, no returns for the purposes of our audit are prepared at the branches and other offices of the Company;
d) The Balance sheet, the Revenue accounts, the Profit and Loss account and the Receipts and Payments account dealt with by this report are in agreement with the books of account;
e) The accounting polices selected by the Company are appropriate and such accounting policies and the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act read with the Companies (Accounting Standards) Rules, 2021 and other accounting principles generally accepted in India read with and which are not inconsistent with the accounting principles prescribed in the IRDAI Financial Statements Regulations, the Insurance Act, IRDAI Act and circulars/orders/directions issued by IRDAI in this regard;
f) Investments have been valued in accordance with the provisions of the Insurance Act, the IRDAI Financial Statements Regulations and/or orders/ directions issued by IRDAI in this regard;
g) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2026 from being appointed as a director in terms of section 164(2) of the Act;
h) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on 31 March 2026 and operating
effectiveness of such controls, refer to our separate Report in Annexure A wherein we have expressed an unmodified opinion; and
i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note no. 5.1.1 and 5.2.21 to the financial statements;
ii. Liability for insurance contracts, is determined by the Company’s Appointed Actuary referred to in “Other Matter” paragraph above, on which we have placed reliance. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts. The Company did not have any outstanding long term derivative contracts - Refer Note no. 5.2.22 to the financial statements;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company - Refer Note no. 5.2.23 to the financial statements.
iv. a. The Management has represented
that, to the best of its knowledge and belief, as detailed in note 5.2.19 to the financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (‘the Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b. The Management has represented that, to the best of its knowledge and belief,
as detailed in note 5.2.19 to the financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (‘the Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above contain any material misstatement.
j) As stated in note 5.2.25 to the accompanying financial statements,
a. The interim dividend declared and paid by the Company during the year ended 31 March 2026 and until the date of this audit report is in compliance with section 123 of the Act.
b. The final dividend paid by the Company during the year, in respect of the same declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.
c. The Board of Directors of the Company have proposed final dividend for the year ended 31 March 2026 which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, to the extent it applies to proposal of dividend.
k) As Stated in note 5.2.28 to the accompanying financial statements and based on our examination which included test checks on the software application, the Company, in respect of financial year commencing on 01 April 2025, has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions
recorded in the respective software applications. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with. Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention from the date the audit trail was enabled for the accounting software.
18. With respect to the other matters to be included in the Auditor's report, in terms of the requirements of Section 197(16) of the Act, we report that managerial remuneration payable to the Company's Directors is governed by the provisions of Section 34A of the Insurance Act, 1938 and is approved by IRDAI. Accordingly, the managerial remuneration limits specified under Section 197 of the Act do not apply.
For Walker Chandiok & Co LLP For PKF Sridhar & Santhanam LLP
Chartered Accountants Chartered Accountants
Firm Registration Number: 001076N/N500013 Firm Registration Number: 003990S/S200018
Sudhir N. Pillai Dhiraj Kumar Birla
Partner Partner
Membership No. 105782 Membership No. 131178
UDIN: 26105782TDMQUU6671 UDIN: 26131178VUGBLQ7351
Place: Mumbai Date: 15 April 2026
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