ICICI Lombard drops 14.86% after Q1 FY2025 profit slides 46% and CoR rises to 102.3%; broker targets cut
AI Market Summary
ICICI Lombard's Q1 FY25 results materially missed expectations, with PAT down 46% YoY and CoR at 102.3% amid weaker underwriting, lower investment income, and incremental motor TP reserving tied to a Supreme Court ruling. Fire business premium fell ~32% as pricing remained competitive and discipline tightened. Multiple brokerages cut earnings estimates and downgraded the stock, reinforcing negative sentiment toward Indian non-life insurers and financials.
Impact level
● Medium
Affected assets
NCSINIFTY52USD/USDT-0.04%
AI Insight · NCSINIFTY52USD/USDTAI Insight
▼ Bearish
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ICICI Lombard reported Q1 FY2025 results with net profit down 46% year on year, while its combined operating ratio (CoR) rose to 102.3%, missing market expectations. The quarter was hit by additional reserving in Motor TP following a Supreme Court verdict and a 32% drop in fire premiums as underwriting discipline tightened, pressuring both underwriting and investment income. Several brokerages cut earnings estimates, targets and ratings, after the stock fell 14.86% to Rs 1,544.40 and is down 17.85% year to date.
