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Informist, Wednesday, Jul. 15, 2026

 

--CONTEXT: Comments from ICICI Lombard mgmt in post earnings analyst call 

--ICICI Lombard: Motor segment seeing good tailwinds 

--ICICI Lombard: Increasing focus on SME, commercial business 

 

By Nandini Sinha and Kabir Sharma

 

MUMBAI – ICICI Lombard General Insurance Co. Ltd. has made requisite provisions in the financials of the June quarter of 2026-27 (Apr-Mar) following an assessment of the impact of the Supreme Court's judgement on motor third party portfolio, the company's management said in a post-earnings conference call with analysts Wednesday.

 

The Supreme Court's judgement resulted in an increase of INR 1.65 billion in claim reserves in the insurer's motor third party portfolio, the company said in the investor presentation. "In general, I think what we generally factor in is to be prudent and conservative whenever such events come to light...and that's the reason why we always say that Motor TP (third party) in specific always has to be kind of looked at with a lens of conservatism in terms of reserving that you carry," a senior official at the company said in the conference call. "...we will wait and see in terms of how the impact plays out." 

 

The motor segment has seen good tailwinds since September 2025, the management said. Growth in the segment stood at 13.9% for the June quarter, up from 8.7% a year ago. 

 

The company outlined the loss under the fire segment due to its significant impact, the management said. The company said it incurred two losses amounting to INR 630 million under the fire segment, impacting the combined ratio by 1.0%. The Supreme Court's judgement had an additional impact of 2.8% on the combined ratio, ICICI Lombard said in the presentation. The combined ratio stood at 106.1% in the June quarter, up from 102.2% in the year-ago period. 

 

"...fire loss ratios for us historically, we have never seen a loss ratio in exceedance of 100% plus. So that kind of speaks the impact...but if you were to kind of exclude the two, the loss ratios will be pretty much in the range, in the range within which we have kind of historically operated at," the management said.

 

The insurer has increased its focus on the small and medium enterprises and commercial line segment by leveraging its distribution scale. "Consequent to this, our proportion of SME business in the commercial line segment has increased to 33.6% in Q1 2027 against 28.4% in Q1 2026," the management said.

 

The insurance company's net profit for the June quarter fell 46% on year to INR 4.03 billion. Sequentially, the net profit fell over 26%. On Wednesday, shares of the insurer closed at INR 1,814.60 apiece on the National Stock Exchange, up 1.5%.  End

 

Edited by Avishek Dutta

 

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