Explained: Why ICICI Lombard shares tumbled 15% in their biggest fall since the COVID crash

ICICI Lombard General Insurance shares plunged 15% to a 52-week low of Rs 1,544.60 on the NSE after reporting a 46% YoY drop in Q1 FY27 net profit to Rs 403 crore, hit by large fire insurance claims and a Supreme Court judgment impact on its motor third-party portfolio. Brokerages Nuvama and Motilal Oswal downgraded the stock, with Nuvama slashing its target price by over 29% to Rs 1,660 and Motilal Oswal cutting its target to Rs 1,960, while both trimmed FY27 and FY28 profit estimates by 11-21%. The miss also flagged industry-wide concerns, with the general insurance sector loss ratio worsening to 128% in FY26 from 123.5% in FY25 amid soft reinsurance pricing and competitive pressures.