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Motilal Oswal Report
ICICI Lombard General Insurance Company Ltd.'s net earned premiums came in line with our estimate at Rs 43 billion (up 14% YoY). Investment income from policyholders and shareholders' accounts came in lower than our estimates, which led to a miss in profit after tax in Q3 FY24.
The claims ratio came in at 70.0% versus 70.7% in Q2 FY24. It was broadly in line with our estimate of 70.5%. The combined ratio stood at 103.6% versus 103.9% in Q2 FY24.
PAT grew 22% YoY but declined 25% QoQ to Rs 4.3 billion. PAT came in 27% lower than our estimate.
For nine months-FY24, NEP/PAT grew by 13%/20% to Rs 125 billion/Rs 14 billion.
ICICI Lombard has maintained its guidance of a combined ratio of 102% by FY25.
We have cut our estimates to factor in lower-than-estimated performance in Q3, leading to an earnings per share cut of 4.5%/4.6% for FY24/FY25.
Reiterate 'Buy' with a target price of Rs 1,650 (premised on 30 times FY26E).
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