Buy ICICI Lombard General Insurance Company, target of Rs 1400: Sharekhan

Sharekhan is bullish on ICICI Lombard General Insurance Company has recommended buy rating on the stock with a target price of Rs 1400 in its research report dated January 24, 2023.

Broker Research

January 28, 2023 / 20:49 IST

26 Aug, 2025 12:21

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Sharekhan's research report on ICICI Lombard General Insurance Company

ICICI Lombard reported PAT of Rs. 346 crore (up 9% y-o-y/ down 41% q-o-q) which missed our estimates mainly due to lower investment income and lower premium income. Underwriting loss stood at Rs. 293 crore in Q3FY23 versus a loss of Rs.269 crore in Q3FY22 and loss of Rs. 152 crore in Q2FY23. Gross written premium grew by 17% y-o-y/5.6% q-o-q led by faster growth in commercial lines and Retail/group health segment; while motor business was a laggard with 5% y-o-y growth due to 1% y-o-y growth in Motor OD. Motor TP premium grew by 10% y-o-y. Retail health premium picked up, grew by 24% y-o-y & Group Health grew by 57% y-o-y. The combined ratio was at 104.4% vs 104.5% in Q3FY22 and 105.1% in Q2FY23. Claims ratio decreased by 250 bps q-o-q to 70.3%; the key retail segments of motor OD/motor TP/health also reported a decline in the claims ratio of 170/470/360 bps q-o-q. However, claims ratio increased 70bp y-o-y. Expense ratio reported at 29.9% was up by 50 bps y-o-y/ 110 bps q-o-q and commission ratio was reported at 4.2% (higher by 73 bps q-o-q).

Outlook

Stock currently trades at 29.7x/27.2x/ 24.0x its FY2023E/FY2024E/ FY2025 EPS. We maintain a Buy with an unchanged PT of Rs. 1400.

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