ICICI Lombard saw strong overall growth in Q2 FY24. Its gross premiums grew by 17.8% year-on-year. This shows good progress for the insurance giant. The company’s underlying business also grew well. It expanded by 19% when excluding crop insurance.
ICICI Lombard’s Q2 Performance: Key Details
ICICI Lombard’s latest results cover July to September 2023. Health insurance premiums surged by a huge 29.7%. Fire insurance also showed robust growth. Its premiums rose by 28.3%. Other segments performed strongly too. Marine premiums jumped by 42.9%. Crop insurance grew by 41.4%. You can see the general trend in the Indian general insurance market.
However, motor insurance growth was slower. It grew by only 10.5% in Q2. This is below the industry’s average growth of 14.5% for this segment. Motor insurance remains a big part of the market. Its slower growth is a point to watch.
The company improved its combined ratio. It came down to 102.6% from 104.5% last year. A lower ratio means the company manages claims and costs better. This boosts profitability.
Why Analysts Back a ‘Buy’ Call
Many financial experts still recommend buying ICICI Lombard shares. They see its strong overall premium growth. The company also improved its profitability. The underlying business is solid. Its solvency ratio stands at 2.52 times. This is much higher than the required 1.50 times. It shows great financial strength.
The company’s management is positive. They expect to grow faster than the industry this year. They also plan to further improve the combined ratio. The goal is 102% by FY24 and 100% by FY25. This focus on efficiency is key. It helps to offset weaker areas like motor insurance.
ICICI Lombard keeps gaining market share. This is a positive sign for its long-term future. Investors like seeing growth in non-motor segments. These areas are boosting the company’s value. The company’s strong performance in health and fire insurance is a major plus.
