Jefferies maintains a Buy rating on ICICI Lombard, forecasting a 29% upside with a target price of Rs 2600. The company posted strong Q2 results, with 20% year-on-year growth in premiums, driven in part by investment income.
The combined ratio (CoR) was affected by CAT events, causing a 60 basis points decline year-on-year. However, excluding these events, the CoR improved by 20 basis points to 102.6%. Jefferies remains bullish on ICICI Lombard’s motor insurance segment, which grew 16% year-on-year, and its retail health segment, which posted a 41% growth following the launch of new products.
Looking ahead, Jefferies expects a 17% CAGR in premiums over FY24-27E and believes the combined ratio will improve to 100% by FY27E.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
