ICICI Lombard Q4 Results Review - Strong Show; Better Guidance For Combined Ratio: Motilal Oswal

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 net earned premium came in line with our estimate at Rs 44 billion (up 17% YoY) in Q4 FY24. Total investment income was in line with our expectations (3% beat on policyholders account and 5% miss on shareholders account).The claims ratio came in at 68.6% versus 70.0% Q3 FY24 (our estimate: 70.9%). The combined ratio stood at 102.2% versus 103.6% in Q3 FY24 (our estimate ~104.3). Profit after tax grew 19% YoY to Rs 5.2 billion in Q4, beating our estimate by 17%. For FY24, profit after tax came in at Rs 19.2 billion versus Rs 16 billion in FY23 (20% growth YoY).ICICI Lombard has improved its combined ratio guidance to 101.5% as the exit rate for FY25 versus 102 earlier. Management is upbeat about continued gains in market share in the motor segment and retail health segment. With favorable regulatory moves industry trends would be supportive. With FY24-26 profit after tax compound annual growth rate at 25%, return on equity reaching 20% in FY26 and combined ratio expected to improve to 101.5%in FY26, we maintain Buy with a target of Rs 2,100 (35 times FY26 earnings per share)..Click on the attachment to read the full report:.ICICI Lombard General Insurance Q4 Net Profit Jumps 18.9%.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 Q4 Results Review - Strong Show; Better Guidance For Combined Ratio: Motilal Oswal

We maintain a Buy rating on the stock with a target price of Rs 2,100 (35 times FY26E earnings per share).

Choose a plan