ICICIGI

ICICI Lombard has said that the ongoing aggressive pricing in India's fire insurance market is unlikely to continue for long, as rising underwriting losses and weaker capital positions are forcing insurers to reduce risk-taking. The company believes that sustainable growth can only be achieved through disciplined pricing and operational efficiency rather than offering insurance at uneconomical rates. For the June quarter (Q1 FY27), ICICI Lombard's net profit declined 46% year-on-year to ₹403 crore, mainly due to higher fire insurance claims and an additional reserve created following a Supreme Court ruling related to motor accident compensation. The company's combined ratio increased to 107.2%, indicating higher claims and expenses, although excluding one-time impacts, the ratio remained stable at 102.3%. Despite the weak quarterly earnings, the company's core business remained resilient. Gross Direct Premium Income (GDPI) grew 7.5%, driven by 14% growth in motor insurance and 24.9% growth in health insurance premiums, with retail health premiums rising nearly 70%. ICICI Lombard also maintained a strong solvency ratio of 2.71 times, well above the regulatory requirement, and announced an interim dividend of ₹7 per share. Analysts believe the weak results were largely due to one-time events rather than any deterioration in the company's underlying business.