ICICI Lombard Reports Q1 FY27 Results; Premium Income Grows 7.5% Amid One-Time Claims Impact

BY ADMIN • FILED 15 Jul 2026, 7:53 PM

ICICI Lombard General Insurance Company Limited reported a mixed performance for the first quarter of FY2026-27, with healthy premium growth offset by exceptional claim-related expenses that weighed on profitability.

For the quarter ended June 30, 2026, the insurer continued to expand its business while maintaining a strong capital position despite the impact of large fire claims and higher motor third-party reserves.

Q1 FY27 Financial Highlights

The company reported steady growth in premium collections but lower earnings due to one-time events.

Key Financial Highlights

Gross Direct Premium Income (GDPI): ₹83.18 billion, up 7.5% year-on-year.
Profit Before Tax (PBT): ₹5.36 billion, down 46.1% YoY.
Profit After Tax (PAT): ₹4.03 billion, declining 46.0% YoY.

While premium income continued to grow, profitability was impacted by exceptional claim provisions during the quarter.

One-Time Events Impacted Earnings

ICICI Lombard attributed the decline in profits primarily to two major non-recurring factors.

Large Fire Losses

The company incurred ₹0.63 billion in claims arising from two significant fire incidents during the quarter. These losses increased the Combined Ratio (CoR) by approximately 1 percentage point.

Increase in Motor Third-Party Claim Reserves

Following a Supreme Court judgment, the insurer strengthened reserves for its Motor Third-Party (TP) portfolio by ₹1.65 billion, resulting in an additional 2.8 percentage point impact on the Combined Ratio.

These exceptional items had a significant effect on quarterly profitability but are not reflective of the company’s underlying operating performance.

Underlying Business Remains Stable

Excluding the impact of the one-time claim events:

Adjusted Combined Ratio stood at 102.3%, compared with the reported 107.2%.
Adjusted Profit After Tax would have been approximately ₹5.75 billion, representing a lower 23% year-on-year decline.

The adjusted figures indicate that the company’s core insurance operations remained relatively resilient during the quarter.

Strong Capital Position

Despite the temporary pressure on earnings, ICICI Lombard maintained a healthy balance sheet.

Solvency Ratio: 2.71 times, significantly higher than the regulatory requirement of 1.50 times.

The strong solvency position provides the company with sufficient capital to support future growth while comfortably meeting regulatory norms.