ICICI Lombard shares tumble 15% as higher claims, expenses weigh on Q1 earnings

ICICI Lombard General Insurance Co. shares tumbled 15% to their 52-week low level on Thursday, July 16, as investors analysed the latest April to June quarter earnings report for the fiscal year ending 2026-27, which showed higher claims and expenses weighing down financial performance.

Shares of ICICI Lombard GIC crashed 15% to their intraday and 52-week low level of ₹1,544.60 during Thursday’s market, compared to ₹1,814.60 at the previous stock market close, as per NSE data.

After the shares dropped to year-low levels, the company’s stock regained some of its losses, trading 11.63% lower during the morning market hours on the NSE at around the ₹1,604.60 apiece range.

The company announced its Q1 earnings after the market operating hours on Thursday, July 15.

Why did ICICI Lombard shares drop today?

ICICI Lombard shares declined after the opening bell on July 16, as the general insurance company’s Q1 financial performance failed to impress investors with the rising claim payments, commission expenses, and outstanding claims for the period under review.

As per the NSE filings, ICICI Lombard General Insurance recorded a 46% drop in its net profit after tax (PAT) to ₹403.17 crore in the first quarter of the financial year ending 2026-27, compared year-on-year (YoY) with ₹747.08 crore in the same period a year ago.

The financial statements also showed that the insurance company’s claim payments witnessed a 20.6% YoY rise to ₹3,511.61 crore in the June quarter, from ₹2,910.54 crore in the same period a year earlier.

The Q1 data also showed that ICICI Lombard’s outstanding claims expanded by 23% to ₹1,032.91 crore, from ₹839.56 crore in the same quarter of the previous fiscal year.

On the expenses front, the company witnessed a 33% rise in commission and brokerage expenses for the April to June quarter to ₹1,250.18 crore, compared YoY with ₹940.75 crore in the same quarter of the previous year.

A key metric for an insurance company is the incurred claim ratio (ICR), which shows the proportion of total premiums collected vs the total claims paid in a given period. ICICI Lombard’s ICR expanded to 76.4% in Q1, from 73% in the June quarter of the previous year.

Rising income

In contrast, ICICI Lombard GIC’s gross premium income advanced 10% to ₹8,860.27 crore in the first quarter, from ₹8,052.55 crore in the same period a year ago, as per the NSE filings.

The total income of the insurance company also increased 12% to ₹6,813.71 crore in the June quarter, compared YoY with ₹6,083.36 crore in the same period a year earlier, as per the filing data.

How have ICICI Lombard shares perform?

ICICI Lombard shares have delivered 3% returns to investors in the last five years, and over 14% gains in the last three years, according to NSE data. However, the stock has lost 20% in the past one year period.

On a year-to-date (YTD) basis, the company shares has dropped over 19% in the current calendar year, and are down 12% in the last one month period. ICICI Lombard shares were trading 12.5% lower in the last five market sessions on NSE.

Shares of ICICI Lombard hit their 52-week high of ₹2,064.90 on November 13, 2025, while the 52-week low was during Thursday’s trading session. The insurance company’s market capitalisation (m-cap) was at ₹81,215 crore as of the market session on July 16, 2026.