ICICI Lombard (Buy) Target: ₹1,825 CMP: ₹1,385.75

The growth in the health plus segment, fire segment and marine segment was 5.4 per cent, 16.3 per cent and 10.6 per cent q-o-q, respectively while motor de-grew -2.8 per cent q-o-q: After the second wave, ICICI had gone back to group health corporate clients and had effected price increases of 15-20 per cent and higher in some cases. 90 per cent of these corporate customers have been retained at the higher price as they are willing to pay a higher price for better service. The competitive intensity in Motor OD is very high and chip shortage also continues to be an issue for OEM sales. There has been price aggression in the Motor OD segment from 1QFY22 itself. ICICIGI does not expect this to correct this financial year but from the next financial year. ICICIGI expects to outgrow the motor segment market from Q4-FY22 onwards. Management remained hopeful that a price hike for Motor TP from the regulator will transpire in the next financial year. Health plus loss ratio rose 370 bps q-o-q to 75 per cent. There has been an elevated frequency in Non-Covid cases, particularly due to Dengue and Malaria and also a rise in elective surgeries but all these are seeing a decline in Q4-FY22.

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