General Insurance - Improving Trends In The Motor Segment: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The motor insurance premium clocked an 11% compound annual growth rate over FY21-24. For motor own damage/ Motor third party, the three-year CAGR stood at 12%/10%. The passenger vehicle/two-wheeler sales, within the auto industry, registered a three-year CAGR of 16%/5%.  Numerous trends are emerging in the motor insurance space, such as:the rising share of electric vehicles;improving loss ratios in the third party segment; andthe changing product mix among vehicles. .We conducted channel checks to get a perspective on these trends.The underwriting experience of EVs is still evolving, and the current profitability of the segment is healthy. Battery costs have been an issue, but as technology evolves, the impact will subside.Motor third party loss ratios are improving fundamentally and are likely to improve further. However, this might restrict the possibility of a price hike in the segment.ICICI Lombard General Insurance Company Ltd.’s motor market share has improved to 11%+ in FY25 year-to-date from 9.8% in H1 FY24. The loss ratio trajectory has been consistently improving and for FY24, the loss ratio for motor own damage/motor third party was 63.5%/66.8% (versus 72.6%/72.2% in FY23)..We remain positive on ICICI Lombard as it improves its market share in the auto segment. We reiterate our Buy rating with a one-year target price of Rs 2,100 (premised on 35 times FY26E earnings per share)..Click on the attachment to read the full report:.Life Insurance - Individual Weighted Received Premium For Private Players Grew 22% YoY In June: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

General Insurance - Improving Trends In The Motor Segment: Motilal Oswal

Reiterate Buy on ICICI Lombard; management aiming for market share improvement in the motor segment

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