Jefferies has reiterated its ‘buy’ rating on ICICI Lombard General Insurance, setting a target price of ₹2,500. The company’s adjusted profit after tax (PAT) for 3QFY25 rose by 44% year-on-year (YoY), driven by strong investment income and a stable operating performance. The combined ratio (CoR) remained stable YoY at 102.3% (excluding the 1/n accounting impact).
While gross direct premium income (GDPI) was flat YoY, it grew 5% excluding the 1/n impact. This performance was led by a pull-back in commercial and group lines (-17%) and stable trends (+9%) in the retail business.
ICICI Lombard’s implementation of the Expense of Management (EoM) framework and its profitable risk selection approach continue to strengthen its earnings outlook. Jefferies projects a robust 21% compound annual growth rate (CAGR) for earnings over FY24-27, solidifying the company’s position as its top pick in the general insurance (GI) space.
At the current market price (CMP) of ₹1,955, ICICI Lombard offers notable upside potential, aligning with its strong growth trajectory and strategic initiatives.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are advised to consult with their financial advisor before making any investment decisions.
