ICICI Lombard Q1 FY27 Results (NSE: ICICIGI)
Signal: Earnings declined
The read
Q1FY27 PAT crashed 46% YoY to ₹40.3 Cr as the combined ratio deteriorated 140bps to 102.8%, largely from a one-off ₹18,500 lakh reserve recognition related to the Supreme Court homemaker compensation judgment. Excluding this charge, operating metrics still weakened: the underlying incurred claim ratio rose 340bps to 76.4% and expense ratio jumped 300bps to 24.8%. Motor TP profitability remains under structural stress; management is seeking review petition relief.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,913.71 Cr | 4.3% | 4.4% |
| EBIT | ₹233.79 Cr | -64.3% | |
| Net profit | ₹403.17 Cr | -46.0% | |
| EPS | ₹8.08 | -46.3% | |
| EBIT margin | 0% |
P&L walk
Profit fall driven by one-off Motor TP reserve charge and higher claims; underlying premium growth healthy.
Segments
Motor segment swung to an underwriting loss of ₹124,521 lakh (vs loss of ₹10,603 lakh in Q1FY26) due to the ₹18,500 lakh Supreme Court reserve charge; Health Group Corporate also deteriorated to loss of ₹30,173 lakh (vs loss of ₹10,299 lakh), together dragging group profitability.
Key positives
- Gross written premium grew 18.2% YoY to ₹807,370 lakh, indicating strong top-line momentum.
- Yield on investments (with unrealized gains) improved to 4.64% from 3.60% YoY, adding ₹28,031 lakh to shareholders' income.
Key concerns
- Combined ratio worsened to 102.8% (+140bps YoY) driven by higher incurred claim ratio (76.4%, +340bps) and expense of management ratio (24.8%, +300bps).
- Motor TP reserve charge of ₹18,500 lakh from Supreme Court judgment created a one-time underwriting loss of ₹124,521 lakh in the Motor segment (vs ₹10,603 lakh loss a year ago).
- Health Group Corporate underwriting loss widened to ₹30,173 lakh from ₹10,299 lakh YoY, signaling pressure in group health portfolio.
Research and educational content only. Not investment advice.