Sharekhan's research report on ICICI Lombard General Insurance
Q3FY2021 results were steady; the company reported mixed operational numbers, helped by lower combined ratios. However, upfronting of acquisition costs, higher claims payout diluted the PAT performance compared to GDPI growth. Premium incomes, which normalised in 9MFY2021 (GDPI growth of 3.9% y-o-y for 9MFY2021); combined ratio was lower at 97.9% (versus 100.4% in FY2020). ILGI trades at 41x/33x its FY2022E/FY2023E EPS and valuations indicate its long-term business resilience even during challenging times.
Outlook
We recommend Buy on ILGI with a revised PT of Rs. 1,750.
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