Morgan Stanley has reiterated an ‘overweight’ rating on ICICI Lombard General Insurance, setting a target price of ₹1,910, implying a 15% upside from the current market price of ₹1,666.80. The brokerage expects the company to outperform the industry’s projected premium growth of 8.5% in FY26, driven by fire, commercial lines, and retail health segments.
While motor third-party price hikes are expected to be muted, adjustments in select segments could impact overall pricing. Additionally, insurers may reduce commissions or slow growth in high-commission segments to comply with Expense of Management (EOM) limits in FY26.
ICICI Lombard aims to improve its combined ratio from the current 102%, which could help it transition from a sustainable ROE of 16-18% to 18-20% over time, reinforcing its profitability outlook.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research before making any investment decisions.