Buy ICICI Lombard; target of Rs 2000: Motilal Oswal

Motilal Oswal is bullish on ICICI Lombard recommended buy rating on the stock with a target price of Rs 2000 in its research report dated March 28, 2024.

Broker Research

March 29, 2024 / 20:24 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on ICICI Lombard

ICICIGI held an analyst meet to outline its key initiatives in the digital space that will be a vital part of its strategy for improving growth and profitability going ahead. Digitization has been implemented across segments within the company and encompasses the entire journey for various stakeholders, including customers, distribution partners and garages. It is also the first major insurer that has moved all core applications to a cloud platform. The company’s ILTakeCare app has been its key initiative in the health and motor segments. The app onboards customers and provides support services. In comparison to last year, the app has seen 2.1x growth in downloads and has garnered 3.2x GWP. In the RIA (Responsive & Digital Assistant) DIY journey, ICICIGI witnessed a 2x jump with RIA Chatbot and 2.4x with RIA Voicebot. For ICICIGI, ~99.3% of policies are issued digitally and ~63.6% of cashless authorization are done through AI for group health indemnity policies. ICICIGI has witnessed ~9.7% reduction in human touchpoints per policy. The company aspires to increase its indemnity health market share from the current 3% to 4.5% over the next 3-5 years by focusing on product development and cross-selling across channels.

Outlook

The company will continue to invest in digital and tech initiatives. In the medium term, efficiencies from these investments, along with scale benefits, will boost profitability. We have a BUY rating on the stock with a one-year TP of INR2,000 (FY26E 34x EPS).

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