ICICI Lombard General Insurance Company Ltd. share price target

ICICIGI is best positioned to benefit from changing regulations in motor which will drive down both claims and tariffs. However, we expect high competitive intensity and lower motor TP tariffs (de-tariffication/price reduction) to restrict underwriting margins and investment profits. Accordingly, we rate ICICIGI a SELL with a TP of Rs 1,060 (Sep-21E P/E of 26x and a P/ABV of 5.6x). ICICIGIs 2QFY20 saw an NWP decline of 2.1% YoY to Rs 21.7bn, increase in COR (calc.) to 103.7% (+184bps YoY) as expenses increased while claims ratio declined, and lower investment yields of ~8.4% (-121/-111bps YoY/QoQ).

Slow start to the year but fundamentals intact ICICI Lombard General Insurance is a private general insurance company, listed on 27th Sept 2017. The company offers various insurances covering...

Improvement in underwriting performance and increase in investment leverage to drive growth.

ICICI Lombard reported GDPI growth of 17.2% in FY2019 (excluding crop segment 20.5%) as against Q4FY19 growth of 29.4% due to positive regulation changes on Motor-TP business and 50% growth in number of agents by the end of the year including point-of-sale (POS) agents.

ICICI Lombard General Insurance Company Ltd Q2FY19 results Comment Revenue rose by 20.44% to Rs. 2222.02 Cr in Q2FY19 when compared to the previous quarter. Also, it grew by 22.71% when compared with Q2FY18.

We like the ICICIGI franchise given its granular retail portfolio, strong underwriting and robust return ratios. The 4th largest non-life insurer is on track to leverage its presence in 90% of the districts across India through on-boarding of experienced agents, scaling up of its digital assets and making further improvements to its best-in-class claims management process. Thus, ICICI Lombard is positioned to be a major beneficiary of the...

Revenue grew by 1.56% to Rs. 1844.89 Cr in Q1FY19 when compared to the previous quarter. ICICI Lombard General Insurance Company Ltd Q1FY19 results Comment

We met the management of ICICI Lombard to get an insight into the general insurance sector and the company's positioning, business model and growth prospects. It was founded as a JV between ICICI Bank and Fairfax Financial Holdings in 2000. ICICI Lombard is the largest private player and overall fourth largest player in the general insurance industry in terms of gross direct premium income (GDPI) as on FY18. It has a market share of ~8.2% on overall basis. The company offers a comprehensive and well diversified range of products, including motor...

ICICI Lombard General Insurance Company Ltd (ICICI Lombard), is the largest private-sector non-life insurer in India in terms of gross direct premium income (GDPI), as on FY17. The company offers a comprehensive and well-diversified range of products including motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance through multiple distribution channels. The company has wide distribution network across the country strengthened by the wide reach of ICICI bank network (4850 branches)....