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    Buy ICICI Lombard General Insurance Company, target price Rs 1500: Motilal Oswal Financial Services

    Synopsis

    ICICI Lombard General Insurance Company, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 58729.28 Crore) operating in Financial Services sector.

    ICICI LombardAgencies
    The synergy benefits from Bharti AXA merger (technology related),scale benefits and improvement in mix on health business (higher share of retail health) should aid in improving the combined ratio and RoE over the next couple of years.
    Motilal Oswal Financial Services has buy call on ICICI Lombard General Insurance Company with a target price of Rs 1500. The current market price of ICICI Lombard General Insurance Company is Rs 1187.5.
    ICICI Lombard General Insurance Company, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 58729.28 Crore) operating in Financial Services sector.

    ICICI Lombard General Insurance Company key Products/Revenue Segments include Miscellaneous Insurance, Other Operating Revenue, Fire Insurance and Marine Insurance for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 4570.11 Crore, down -2.86 % from last quarter Total Income of Rs 4704.51 Crore and up 13.71 % from last year same quarter Total Income of Rs 4019.13 Crore. Company has reported net profit after tax of Rs 352.53 Crore in latest quarter.

    The company’s top management includes Mrs.Lalita D Gupte, Mr.Murali Sivaraman, Mr.Sandeep Batra, Mr.Ashvin Parekh, Mr.Suresh Kumar, Mr.Uday Chitale, Mr.Ved Prakash Chaturvedi, Mr.Sanjeev Mantri, Mr.Alok Kumar Agarwal, Mr.Bhargav Dasgupta, Mr.Rakesh Jha. Company has PKF Sridhar & Santhanam�LLP as its auditors. As on 30-06-2022, the company has a total of 49 Crore shares outstanding.

    Investment Rationale
    ICICI Lombard delivered weaker-than-expected performance in 3QFY23 on all counts -weaker premium, lower investment income, and higher expense ratio. Going ahead, growth in the motor segment is likely to be back ended with the company waiting for the rationalization of pricing in the own damage (OD) segment. On the health segment, the investments in the hiring of agency managers will continue to keep expense ratio elevated.

    However, synergy benefits from Bharti AXA merger (technology related),scale benefits and improvement in mix on health business (higher share of retail health) should aid in improving the combined ratio and RoE over the next couple of years.

    Promoter/FII Holdings
    Promoters held 48.03 per cent stake in the company as of 30-Jun-2022, while FIIs owned 26.43 per cent, DIIs 13.94 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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