Newly listed general insurance company ICICI Lombard may have trouble managing its expenses, according to global brokerage Macquarie. Analysts at the brokerage, commenting on the property and casualty insurance company, gave it an 'Underperform' rating, pointing to a significant lag between its expenses and collected premiums. This is giving the firm a volatility that would make it difficult for the firm to make new investments, and grow its business.
ICICI Lombard is up by approximately 20% since its listing in September 2017. Macquarie has given the firm a target price of Rs 565 - it is currently trading at over Rs. 780 per share.