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ICICI Lombard posts 15% drop, worst session since March 2020
ICICI Lombard shares fell 15% in their worst session since March 2020 after Q3 net profit dropped 43% to ₹371 crore, missing estimates. Motor and health claims drove underwriting losses to ₹1,042 crore.
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ICICI Lombard General Insurance shares fell 15% in Monday trading, the steepest single-day decline since the Covid crash in March 2020. The drop came after the company reported a 43% fall in net profit for the December quarter, missing analyst estimates.
The insurer posted a net profit of ₹371 crore for the third quarter, down from ₹651 crore a year earlier. Underwriting losses widened to ₹1,042 crore from ₹642 crore in the same period last year, driven by higher claims in the motor and health segments. The combined ratio, a measure of underwriting profitability, deteriorated to 131% from 119% a year ago.
Motor insurance claims rose sharply, with the loss ratio on motor third-party policies climbing to 82% from 68% in the year-ago quarter. Health insurance claims also increased, pushing the segment's loss ratio to 68% from 61%.