INSUBCONTINENT EXCLUSIVE:
ICICI Lombard General Insurance Company shares are expected to be in focus on Wednesday, July 16, after the company posted strong results
for the first quarter of fiscal year 2026 (Q1 FY2026)
The insurer reported a substantial 28.7% year-on-year (YoY) increase in profit after tax (PAT), reaching Rs 747 crore, compared to Rs 580
crore in Q1 FY2025.In terms of Gross Direct Premium Income (GDPI), ICICI Lombard posted modest growth of 0.6%, at Rs 7,735 crore in Q1
FY2026, up from Rs 7,688 crore a year earlier
improved to 20.5% in Q1 FY2026, up from 19.1% in Q1 FY2025, reflecting more efficient use of shareholder capital
Its solvency ratio remained strong at 2.70x as of June 30, 2025, compared to 2.69x at the end of March 2025, well above the regulatory
minimum of 1.50x.The combined ratio, a key metric of underwriting profitability, stood at 102.9% for Q1 FY2026, slightly higher than 102.3%
in Q1 FY2025.On Tuesday, shares of ICICI Lombard closed nearly 1% lower at Rs 2,001.05 on BSE.Also read: Dolly Khanna bets on this smallcap
has reiterated its Buy rating on ICICI Lombard while raising the target price to Rs 2,340 from Rs 2,300
The brokerage noted that heightened competitive intensity has impacted both the motor and group health segments
However, Nuvama expects a recovery in motor insurance growth as volumes increase, which could support a rebound in overall
performance.Motilal Oswal: Buy | Target price: Rs 2,400Motilal Oswal (MOSL) also maintained its Buy call, revising the target price upwards
While the combined ratio slightly missed estimates, strong investment income supported PAT growth
It expects the combined ratio to improve to 101.2% by FY27 and forecasts PAT growth of ~23% in FY26 and 15% in FY27.(Disclaimer:
Recommendations, suggestions, views, and opinions given by the experts are their own
These do not represent the views of TheIndianSubcontinent)
