ICICI LombardMUMBAI: ICICI Lombard General Insurance reported a net profit of Rs 403 crore for Q1 FY2027, marking a sharp decline of 46.0% compared to Rs 747 crore in the corresponding quarter last year. This significant drop was due to two large claims in fire insurance amounting to Rs 63 crore, a rise in provisions for motor claims by Rs 165 crore following a Supreme Court judgement and a sharp rise in crop insurance provisions.Gross Direct Premium Income (GDPI) rose to Rs 8,318 crore during the quarter, reflecting a healthy 7.5% year-on-year increase, driven by broad-based growth across segments. However, this top-line expansion was offset by a deterioration in claims experience. The overall claims ratio increased to 76.4%, up from 73.0% a year earlier.The combined ratio deteriorated to 107.2%, compared with 102.9% in the same quarter last year, indicating a deeper underwriting loss. On the investment front, the insurer showed resilience. Its investment portfolio expanded to over Rs 60,500 crore, supported by stable realised yields of around 8.4%. While this provided a cushion against underwriting losses, it was insufficient to fully offset the decline in profitability.Expense management remained relatively stable, with the expense ratio rising only marginally by under 1 percentage point year-on-year. However, this was not enough to counterbalance the surge in claims costs, which remained the dominant driver of margin compression.