Sharekhan has given Buy recommendation for ICICI Lombard General Insurance with a target price of Rs. 1750 in its research report issued on Jan 19, 2022

Sharekhan’s research report on ICICI Lombard General Insurance

ICICI Lombard General Insurance Company’s (ILGI) profitability missed our estimates, owing to an increase in underwriting loss. PAT came in at Rs. 318 crore versus our expectation of Rs. 442 crore and declined by ~29% q-o-q (up 1% y-o-y). We believe the company’s focus on diversifying into tier-3 and 4 cities is positive and will help the company to ride on a diversifying product mix and multi-channel distribution network, backed by robust risk selection and strong investment returns. Merger with Bharti Axa is expected to bring in cost and operational efficiencies going ahead.

Outlook

We maintain our Buy rating on ILGI with a PT of Rs. 1,750.

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