ICICI Lombard slumps after Q1 profit drops 46% YoY to Rs 403 crore
Profit before tax (PBT) fell 46.09% YoY to Rs 535.70 crore in Q1 FY27.
Gross Direct Premium Income (GDPI) rose 7.5% YoY to Rs 8,318 crore in Q1 FY27 from Rs 7,735 crore in the year-ago period. The growth, however, lagged the general insurance industry's 10.9% expansion during the quarter.
The combined ratio (CoR) on a 1/n basis deteriorated to 107.2% in Q1 FY27 from 102.9% in Q1 FY26, while on an n basis, it increased to 106.1% from 102.2%.
The insurer said the combined ratio was impacted by two major one-off events during the quarter. Large fire insurance claims amounting to Rs 63 crore increased the CoR by 1 percentage point, while a Supreme Court judgment relating to the motor third-party portfolio led to an additional claims reserve of Rs 165 crore, raising the CoR by another 2.8 percentage points. Excluding these impacts, the combined ratio stood at 102.3%, broadly in line with 102.2% reported a year ago.
Investment income declined to Rs 1,174 crore in Q1 FY27 from Rs 1,288 crore in the corresponding quarter last year. Net capital gains (after impairment on investment assets) also fell to Rs 183 crore from Rs 380 crore.
Return on Average Equity (RoAE) dropped to 9.6% in Q1 FY27 from 20.5% in Q1 FY26. Excluding the impact of the fire losses and the Supreme Court judgment, RoAE stood at 13.6%.
The company's solvency ratio improved to 2.71 times as of 30 June 2026 from 2.67 times as of 31 March 2026, remaining comfortably above the regulatory requirement of 1.50 times.
ICICI Lombard General Insurance Company is a private general insurance company in India. It offers a well-diversified range of products and risk management solutions through multiple distribution channels. It has 341 branches and 15,008 employees as of March 31, 2026.
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