Buy ICICI Lombard; target of Rs 2400: Motilal Oswal

BUY

Motilal Oswal's research report on ICICI Lombard

ICICI Lombard’s (ICICIGI) gross written premium was up 2% YoY in 1QFY26 at INR81b (in line), impacted by 1/n regulation and its cautious approach to the motor segment. NEP grew 14% YoY to INR51.4b (in line). The claims ratio stood at 73% (in line) vs. 74% in 1QFY25. The commission ratio increased to 16.8% (our est. 16%) vs. 15% in 1QFY25 and the opex ratio came in at 13.2% (our est. 12.5%) vs. 13.3% in 1QFY25. The increase in expense ratios resulted in a 140bp miss in the combined ratio at 102.9% (vs. 102.5% in 1QFY25). Excluding the 1/n impact, the combined ratio was at 102.2% in 1QFY26.

Outlook

We have broadly retained our FY26/FY27 NEP estimates but increased FY26 earnings estimates by 3%, considering robust investment gains in 1QFY26. Reiterate BUY with a TP of INR2,400 (based on 33x Mar’27E EPS).

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ICICI Lombard - 6072025 - moti