ICICI Lombard hits new record high on CLSA upgrade, forecasts 7% upside potential

So far this year, shares of this private insurance player has surged over 27 percent, beating benchmark Nifty 50 index that rose over 10 percent

Shares of ICICI Lombard surged 2 percent to hit an all-time high of Rs 1,860 on July 3 after global brokerage firm CLSA upgraded it to 'outperform' from 'hold' and raised target price to Rs 2,000 per share, indicating an upside of 7 percent from current levels.

So far this year, shares of this private insurance player has surged over 27 percent, beating benchmark Nifty 50 index that rose over 10 percent during the same period.

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Analysts at CLSA said that ICICI Lombard's motor insurance premiums clocked in 2 months of FY25 is far ahead of industry 15 percent average. It registered 31 percent year-on-year growth in motor premiums in 2MFY25.

Going forward, the brokerage firm raised overall premium growth estimate by 2 percent in FY25 and believed the momentum in motor book to persist. "We lift our price target as we raise our target PE multiple to 30x and see 11 percent potential upside from here on," they noted.

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Earlier, ICICI Lombard introduced retail health insurance product called 'Elevate' with advanced features such as AI-driven coverage, 'Power Booster' add-ons, and reset benefits.

Following this, analysts at Jefferies highlighted that the unlimited sum insured and customization options in 'Elevate' could significantly bolster ICICI Lombard's market share in retail health, currently at 3 percent compared to its overall 9 percent share. The brokerage firm shared a 'buy' call on the counter and set target price at Rs 2,090 per share.

In May, ICICI Lombard reported robust year-on-year growth of 22 percent in retail premiums, driven by strong performance in motor (29 percent growth) and health (22 percent growth).

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