Buy ICICI Lombard General Insurance Company; target of Rs 2550: Sharekhan

Buy

Sharekhan's research report on ICICI Lombard General Insurance Company

PAT beat estimates at Rs. 724 crore, rising 68% y-o-y. Higher investment income (up 28% y-o-y) and lower claim ratio (in motor & commercial lines) drove strong earnings. Benign competition is boosting underwriting performance. Decline in commercial lines, group health and deferred accounting of long-term retail health policies led to muted GWP on expected lines. Claims ratio stood at 65.8% vs 70.0% y-o-y. Combined ratio was at 102.7% vs 103.6% y-o-y. Underwriting loss stood at Rs. 152 crore vs. Rs. 282 crore y-o-y.

Outlook

Stock trades at 35.6x/31.0x/27.5x its FY2025E/FY2026/ FY2027 EPS. We maintain a Buy with an unchanged PT of Rs. 2,550.

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ICICI Lombard General Insurance Company - 20012025 - khan