ICICI Lombard General Insurance reported a sharp 46% year-on-year decline in Q1 FY27 net profit to Rs 403 crore, well below market expectations. The earnings miss was driven by two significant fire insurance losses and the impact of the Supreme Court's Motor Third Party (TP) verdict requiring higher reserve provisioning.
Key Highlights: Gross Direct Premium Income (GDPI) grew 7.5% to Rs 8,318 crore, a moderation from the 18.2% growth in Q4 FY26. The combined ratio worsened to 107.2% from 102.9% a year ago, reflecting the impact of large claims. Claims paid rose nearly 21% year-on-year, driven by fire losses and motor TP provisioning.
Despite the profit decline, retail health insurance demand remained strong, and motor insurance exhibited notable growth. The stock tumbled 15% on the day of the results announcement.
Source: Economic Times (July 16, 2026)