ICICI Lombard's growth trajectory has improved on the back of a recovery in motor insurance, owing to GST cuts, strong market share gains in retail health (additional boost from GST exemption), and rising market share in commercial lines over the past few months, believes the brokerage Motilal Oswal. The company's retail health segment maintains its strong momentum, gaining market share with significant traction in its ‘Elevate' product. Competitive intensity remained high in the motor OD segment, while motor third party segment saw significant improvement in claims ratio following the impact of SC judgement last quarter.
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Motilal Oswal Report
ICICI Lombard General Insurance Company Ltd.s growth trajectory has improved on the back of a recovery in motor insurance, owing to GST cuts, strong market share gains in retail health (additional boost from GST exemption), and rising market share in commercial lines over the past few months, believes the brokerage Motilal Oswal.
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The company's retail health segment maintains its strong momentum, gaining market share with significant traction in its ‘Elevate' product. Competitive intensity remained high in the motor OD segment, while motor third party segment saw significant improvement in claims ratio following the impact of SC judgement last quarter.
With deteriorating industry ratios, ICICI Lombard is well positioned within the industry, given the regulator's stance on improving affordability for the customer.
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The brokerage has slightly increased our NEP estimates but revised its PAT estimates upwards by 7%/5% for FY27/28, considering strong investment performance in Q2 FY27.
The final distribution regulations could have a significant impact on growth if implemented as proposed, and hence remain a key monitorable. Additionally, target price hike adjustments, IFRS, and RBC implementation could impact the company's operating performance.
Motilal Oswal reiterates itsr Neutral rating on the stock with a target price of Rs 1,730, based on 25 times FY28E earnings per share.
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