ICICI Lombard rises 2%, nears 52-week high on strong June premium collection

So far this year, the stock of this insurance player surged by over 30 percent, beating 11 percent rise in the benchmark Nifty 50 index

Shares of ICICI Lombard General Insurance Company jumped 2 percent to Rs 1,875 apiece on July 9, nearing its 52-week high of Rs 1,877 touched on July 5, 2024. The uptick comes after June general insurance data indicated strong premium collections for the company as against other players.

Data indicated that ICICI Lombard saw 16 percent year-on-year (YoY) growth in June premiums to Rs 2,217 crore from Rs 1,912 crore in the year-ago period. For the April-June period (Q1FY25), the company clocked 20 percent YoY growth to Rs 7,687 crore and increased its market share by up to 62 basis points (bps).

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So far this year, the stock of this insurance player surged by over 30 percent, beating 11 percent rise in the benchmark Nifty 50 index.

The company continued to outperform the general insurance industry. Others like New India Assurance saw a modest 3.8 percent YoY increase in June premiums, while Go Digit Insurance saw 13 percent YoY growth in premiums, and Star Health registered 15.5 percent YoY growth in June premium collections.

Meanwhile, New India Assurance saw 2 percent YoY growth in Q1FY25 premiums, while Star Health, and Go Digit garnered 17 percent YoY growth, respectively.

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Earlier, ICICI Lombard's gross direct premium income increased by 22 percent YoY to Rs 6,073 crore in Q1FY25, while profit after tax grew by 19 percent YoY to Rs 520 crore. Following this, analysts at Geojit Financial Services maintained a positive outlook on the stock and retained a 'buy' rating with target price at Rs 1,898 apiece.

"Strong distribution network and leading market position helped ICICI Lombard clock substantial growth in premium income. The trend is expected to continue. Loss ratio and combined ratio is expected to come
down in the near term, resulting in higher profitability," they added.

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