ICICI Lombard Q3 Review — Strong Beat In Profitability, Premium Growth Inline; Motilal Oswal Maintains 'Buy'

The general insurance industry’s growth rate is currently on a slow trajectory, due to 1) weak infrastructure investments, 2) slow credit growth, and 3) weak trends in motor sales growth..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.ICICI Lombard General Insurance Company Ltd.’s gross domestic premium income was flat YoY in Q3 FY25 at Rs 65 billion (inline), impacted by 1/n regulation implementation for long term products. Sans the impact of the regulation, GDPI would have grown 4.8% YoY. Net earned premium grew 17% YoY to Rs 51 billion (in line). For 9M FY25, NEP grew 17% YoY to Rs 146 billion.The claims ratio was significantly lower than our estimate at 65.8% (versus 70% in Q3 FY24). On a sequential basis, the commission ratio increased ~540 bp to 22.9% (our estimate: 17%). The expense ratio declined to 14% from 15.6% in Q2 FY25 (estimate: 16%). A lower-than-expected loss ratio led to a beat in the combined ratio at 102.7% (estimate: 104.7%) compared to 103.6% in Q3 FY24. PAT grew 68% YoY to Rs 7.2 billion (14% beat). For 9MFY25, PAT grew 43% YoY to Rs 20 billion.While growth in the commercial and auto segments remained weak on the back of a weak economic backdrop, the health segment continued to do well for ICICI Lombard. Even in the motor segment, the company continued to gain market share. We have raised our FY25/FY26 earnings estimates by 7% each on the back of better-than-expected performance in Q3 FY25. Reiterate Buy with a target price of Rs 2,300 (based on 35 times Sep’26E earnings per share)..Click on the attachment to read the full report:.SBI Life Q3 Results Review — Moderate Growth; Margins Holding Well; 'Hold' The Stock Says Nirmal Bang.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 Review — Strong Beat In Profitability, Premium Growth Inline; Motilal Oswal Maintains 'Buy'

In the motor segment, ICICI Lombard has been able to gain market share through its strategy of picking profitable businesses and thanks to easing competitive intensity, adds the brokerage.

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