ICICI Lombard Shares Drop 4% on Underwriting Losses, One-Off Impacts

• ICICI Lombard shares fell 4% despite healthy topline growth due to weak underwriting and operating metrics.
• Net earned premium grew 13%, but underwriting losses widened, and operating profit declined by 17%.
• Profit after tax dropped 10% despite a 42% rise in investment income, with combined ratio worsening to 104.5%.
• HSBC noted the Q3 profit miss was due to increased loss ratios and higher wage costs, cutting FY26 earnings estimates.
• CLSA highlighted mixed Q3 results, with one-off labor code charges impacting earnings, but strong retail health and improved motor insurance growth.

Why It Matters: ICICI Lombard's shares declined due to widening underwriting losses and one-off costs, despite premium growth.