Way2wealth has come out with its report on ICICI Lombard General Insurance Company , The research firm has recommended to “ Subscribe ” the IPO in its research report as on September 13, 2017
ICICI Lombard General Insurance Company Ltd. (ILGIC) was founded as a joint venture between ICICI Bank Ltd., India’s largest private sector bank (in terms of consolidated total assets) and Fairfax Financial Holdings Ltd., a Canadian based holding company engaged in property and casualty insurance and re-insurance and casualty management. ILGIC is the largest private sector non-life insurer in India based on gross direct premium income since FY04 after commencing operations in FY02. ILGIC offers its customers a wide range of products including motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance.
ICICI Lombard is the largest private-sector non-life insurer in India, a position the company has maintained since FY04 after being one of the first few private-sector companies to commence operations in the sector in FY02. The company has a market share of 18% in the private sector and an overall industry market share of 8.4% in FY17. ICICI Lombard has set a new standard by servicing 17.7 million policies in FY17, an increase of 12% and in terms of claim settlement response time, the company anchored set standards, settling 99.4% health claims and 92.2% motor claims (own damage) within 30 days. At the price band of `651-661 the asking valuations for the issue are ~46-47x its FY17 EPS of `14.1/- & ~8x P/BV for FY17. As a macro space we believe insurance sector can witness high growth as awareness of risk cover as well as shift of savings to financial assets accelerates over the next decade. Being a leader in the space & having superior operating metrics we believe the company is well poised to take up the opportunity of increase in penetration over the next few years. We advice investors with a long-term investment horizon to SUBSCRIBE to the issue.
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