ICICI Lombard General Insurance Company Limited — Q1 FY27 earnings call

I think we have done a holistic assessment of all the exposures that we have on the books as at June 30. This includes not only just the book that has been underwritten for Quarter 1, we have also looked at the book that we have underwritten even for in terms of the exposures that we have for the past periods and I am just reiterating basis all of that from a prudence and conservatism standpoint.

Clarifies that the ₹1.65 billion provision is a holistic assessment covering the entire book up to June 30, not just Q1 business, and reflects the company's conservative reserving philosophy.

Asked by Sanketh Godha

I think at this point of time, I think these are just initial days. I think we will have to wait and see how some of these variables play out for the future and then we will be able to come back and specifically speak or maybe start talking about what are we seeing as an update.

Management indicates uncertainty regarding future Motor TP loss ratios and potential price hikes, suggesting it's too early to predict normalization and that industry actions are pending.

Asked by Prayesh Jain

if you were to kind of exclude the two, the loss ratios will be pretty much in the range within which we have kind of historically operated at... generally the loss ratio range that we have operated is between 65% to 70% on an average over years.

Explains that the elevated Fire loss ratio in Q1 was due to two specific large losses (₹0.63 billion), and without them, the segment would have performed within historical profitable ranges.

Asked by Madhukar

Unfortunately, Rishi, that is the point, right? I think because there is a lot of variability, I think to be honest, to say that nothing will change also is something we do not think is likely to exist. There will definitely be actions on ground, which is the reason why I said this is an industry-impacting event.

Management emphasizes the dynamic nature of the situation and the expectation of industry-wide actions (like price hikes) to address the Motor TP loss ratio impact, rather than providing a fixed ongoing impact.

Asked by Rishi Jhunjhunwala

overall solvency of the industry as a whole, which used to be roughly at about 1.75x at end of March ‘25, this number has come down to 1.56x at March ‘26... hence the ability of players to continue to kind of lose capital, in our sense, I do not think is something that is something that can be sustained.

Management links the competitive intensity in Fire to declining industry solvency, suggesting that aggressive pricing is unsustainable and a recalibration by players is expected, which could lead to reduced price aggression.

Asked by Nidhesh Jain

Across the industry, what we have seen is normally some of these elevated claim incidences is something that we see in Quarter 2, because it's largely kind of linked to, let’s say, some of the monsoon-related stuff.

Explains that the elevated Health loss ratio is an industry-wide phenomenon, potentially seasonal (monsoon-related), and not specific to ICICI Lombard, indicating a broader trend to monitor.

Asked by Rahil Shah

this is not something that pertains to the latest periods. This is a policy that dates back almost about seven, eight years back... not material on the overall net P&L, we do not think it is going to be anything material.

Clarifies that the ₹78 crore arbitration award is for an old policy, not a new book, and is not expected to materially impact the net P&L due to existing reserves and reinsurance.

Asked by Avinash

we will wait for the regulator to possibly spell it out, as in terms of what their thought processes are... from an ICICI Lombard standpoint, we think they will be extremely positive.

Management is awaiting regulatory clarity on Motor TP commission regulations but anticipates a positive outcome for ICICI Lombard, indicating potential structural changes in the segment.

Asked by Avinash