ICICI Lombard Shares Plunge 15% Following 46% Profit Drop

Shares of ICICI Lombard plunged up to 15% on July 16, 2026, hitting a 52-week low after the company reported a 46% year-on-year decline in net profit for the first quarter ended June 30. Net profit fell to 4.03 billion rupees from 7.47 billion rupees in the previous year's corresponding period.

The downturn was driven by a 13.8% contraction in the commercial insurance segment and a 21% rise in claims paid, totaling 35.16 billion rupees. Specific losses included 630 million rupees from two large fire insurance claims and a 1.65 billion rupees reserve charge for motor insurance following a Supreme Court of India ruling on compensation benchmarks. These factors pushed the company's combined ratio to 107.2%, meaning claims and expenses exceeded premium income.

Despite these setbacks, the company saw growth in motor insurance, which rose 14%, and retail health gross premiums, which grew 69.5% year-on-year. In response to the financial results, several brokerages downgraded the stock. Motilal Oswal and HSBC lowered their target prices and ratings, while Jefferies maintained a sell rating, warning of structural challenges and a potential multi-year de-rating in the non-life insurance sector.