ICICI Securities research report on ICICI Lombard General Insurance Company
ICICI Lombard (ICICIGI) has reported healthy earnings growth of 25.4% over the last three years and 22.9% YoY growth in H1FY26 (26.2% ex-capital gains). Even on 5-year basis, earnings CAGR is 16%, highlighting the compounding potential of the stock which warrants a commensurate multiple. Sectoral challenges, in terms of lower motor growth and higher loss ratios, are cyclical but growth may improve in H2FY26 driven by GST cuts accompanied with better loss ratios.
Outlook
Upgrade to BUY from Add, as we revise our TP to INR 2,250 (vs. INR 2,078), based on 32x FY27E EPS of ~INR 70.3 (earlier 30x FY27E EPS of INR 69.3). Higher growth expectation is the primary driver for upgrades.
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