Motilal Oswal's research report on ICICI Lombard
ICICIGI’s gross domestic premium income (GDPI) was flat YoY in 3QFY25 at INR65b (in line), impacted by 1/n regulation implementation for longterm products. Sans the impact of the regulation, GDPI would have grown 4.8% YoY. NEP grew 17% YoY to INR51b (in line). For 9MFY25, NEP grew 17% YoY to INR146b. The claims ratio was significantly lower than our estimate at 65.8% (vs. 70% in 3QFY24). On a sequential basis, the commission ratio increased ~540bp to 22.9% (our est. 17%). The expense ratio declined to 14% from 15.6% in 2QFY25 (est. 16%).
Outlook
We cut our FY27 estimate by 6% as we lower our investment yield forecast. We maintain BUY with a one-year TP of INR2,300 (35x Sep’26E EPS).
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