- ICICI Lombard's Q1 net profit fell 46% to Rs 403 crore in fiscal 2027
- Net Premium Earned rose 16% year-on-year to Rs 5,950 crore
- Gross Direct Premium Income grew 7.5% to Rs 8,318 crore, below industry growth
ICICI Lombard General Insurance Co. Ltd. saw a 46% downtick to Rs 403 crore in the net profit for its standalone first quarter results for the fiscal 2027, according to an exchange filing from the company on Wednesday.
The company's Net Premium Earned was 16% (Year-On-Year) higher at Rs 5,950 crore compared to the previous fiscal's Rs 5,136 crore.
The firm's solvency ratio was at 2.71x as at June 30, 2026 compared to 2.67x as of March 2026 which was higher than the minimum regulatory requirement of 1.50x.
Gross Direct Premium Income (GDPI) increased 7.5% year-on-year to Rs 8,318 crore in the June quarter from Rs 7,735 crore a year earlier. However, the growth lagged the general insurance industry's expansion of 10.9% during the same period.
The company's combined ratio deteriorated during the quarter, rising to 107.2% on a 1/n basis from 102.9% a year ago. On an "n" basis, the combined ratio stood at 106.1%, compared with 102.2% in the corresponding quarter last year.
ICICI Lombard attributed the higher combined ratio to two significant one-off factors. The company incurred two large fire insurance claims amounting to Rs 63 crore, which impacted the combined ratio by around one percentage point. Additionally, a Supreme Court judgment relating to the Motor Third-Party portfolio led to an increase in claim reserves of Rs 165 crore, adding another 2.8 percentage points to the combined ratio.
ALSO READ: HDB Financial Q1 Results: Profit Jumps 38%, Revenue Nears Rs 5,000-Crore Mark
Investment income also declined during the quarter to Rs 1,174 crore from Rs 1,288 crore in the year-ago period. Net capital gains, after impairment on investment assets, fell sharply to Rs 183 crore from Rs 380 crore in the corresponding quarter of fiscal 2026.
Return on Average Equity (RoAE) dropped to 9.6% in the June quarter from 20.5% a year earlier. Excluding the impact of the two large fire losses and the additional Motor TP claim provisions following the Supreme Court ruling, the company's RoAE would have stood at 13.6%.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.