ICICI Lombard Q1 Result Review - Focus Remains On COR Improvement Over Growth: ICICI Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.ICICI Lombard General Insurance Company Ltd.’s strategy remains that of profitable growth. This can entail profits over market share in motor (YoY 400/146 basis points lower loss ratio/market share in motor in Q1 FY24) with higher-than-industry growth in health (12/131 bps gain in retail/group health market share YoY in Q1 FY24). However, combined operating ratio improvement is notable (102.9%) adjusted for Catastrophic losses in Q1 FY24). Maintain 'Buy' with a target price of Rs 1,633 based on 35 times FY25E earnings per share of Rs 46.6.Key elements of our forecast include: 16.5/14.6% gross direct premium income growth in FY24E/FY25E,gradual improvement in COR from 104.5% in FY23 to 103.6% in FY24E and 102.7% in FY25E,investment leverage at 4.1 times levels, andinvestment yields of ~8% in FY24E/ FY25E. This leads to an earnings compound annual growth rate of 15% and return on equity improvement from 17.7% in FY23 to 19% between FY24-25. Risks to earnings includeProlonged competitive pressures resulting in less attractive balance between growth and COR;continued pricing pressure in motor segment; andregulatory disruptions creating near-term headwinds..Click on the attachment to read the full report:.ICICI Lombard Q1 Result Review - Motor Segment Remains A Growth Concern: Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Lombard Q1 Result Review - Focus Remains On COR Improvement Over Growth: ICICI Securities

ICICI Lombard’s strategy remains that of profitable growth.

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ICICI Lombard Q1 Result Review - Focus Remains On COR Improvement Over Growth: ICICI Securities

ICICI Lombard’s strategy remains that of profitable growth.

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