ICICI Lombard Q3 Results Review - Motor Segment Growth Improves As Guided: Yes Securities

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..Yes Securities Report.ICICI Lombard General Insurance Company Ltd. has started to grow faster than the industry on the back improved motor segment growth: In Q3, gross direct premium income for the company grew 13.4% YoY compared with 12.3% for the industry. The company was consciously losing market share in the motor segment but has gained some market share in December 2023. There was no revision in motor third party base premium for FY24. The company’s market share in private cars is 12% and in two-wheeler is around 22%. .Combined ratio for ICICI Lombard is somewhat elevated due to catastrophe events: The combined ratio for the company was 103.7% in nine months-FY24 versus 104.6% in 9MFY23. Excluding the impact of CAT losses of Rs 1.37 billion in 9MFY24, the combined ratio was 102.6% in 9M FY24. The combined ratio for the company was 103.6% in Q3 FY24 versus 104.4% in Q3 FY23. The company has maintained its guidance of 102% CoR by the end of FY25. .We maintain less-than-bullish 'Add' rating on ICICI Lombard with a unchanged price target of Rs 1600: We value ICICI Lombard at 34 times FY25 price/earning for an FY23-26E earnings per share compound annual growth rate of 16%. At our target, the implied FY25E price/book is 5.8 times whereas the prospective return on equity profile is at ~17%..Click on the attachment to read the full report:.ICICI Lombard Q3 Results Review - Combined Ratio Misses Estimate On Higher Opex: 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.

ICICI Lombard Q3 Results Review - Motor Segment Growth Improves As Guided: Yes Securities

Net premiums earned growth was flat QoQ, where the growth in health segment was offset by the de-growth in crop segment

Choose a plan