Sharekhan's research report on ICICI Lombard General Insurance Company
ICICI Lombard reported a PAT of Rs. 437 crore (up 40% y-o-y/ 24% q-o-q), above the consensus and our estimates driven by higher investment income and a likely rise in inward commissions.. However, GDPI growth moderated to 7% y-o-y. Excluding one off transaction during the quarter, the GDPI growth was at 12.5% y-o-y. Premium growth was still slower than industry growth (~16.9%). Net earned premium grew by 12% y-o-y. Despite higher claims ratio at 74.2% vs 70.3% q-o-q led by higher claims ratio in Motor third-party segment, Combined ratio at 104.2% remained stable q-o-q due to higher inward commission and lower expenses. Underwriting loss stood at Rs. 251 crore vs Rs. 293 crore q-o-q and Rs. 309 crore y-o-y.
Outlook
Stock currently trades at 27.0x/ 23.7x its FY2024E/ FY2025 EPS. We maintain a Buy with an unchanged PT of Rs. 1400.
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ICICI Lombard General Insurance Company - 20 -04 - 2023 - khan