Shares of ICICI Lombard General Insurance Company fell 6% to Rs 1,174.35 on the BSE in intraday trade on Wednesday after the company reported disappointing earnings for the third quarter of the fiscal year 2022-23 (Q3FY23).

The insurer reported an increase of 9% in insured losses to Rs 293.46 crore during the period under review.

“Q3 is a seasonal quarter in terms of the retail business line. Given the higher retail mix in Q3, any distribution costs incurred by the company must be paid upfront. However, the benefit is that the premium terms accrue over time. As a result, underwriting losses widened. Historically, underwriting losses in the third quarter were higher due to the festive months,” management said on the earnings call.

Meanwhile, the company’s Q3FY23 net profit rose 11% YoY to Rs 353 crore on healthy growth in gross written premiums. Gross premiums earned by the insurer rose 17% year-on-year to Rs 5,600 crore. Its gross direct premium income (GDPI) stood at Rs 5,493 crore, up 17% from a year earlier.