Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

ICICI Lombard - Q1 FY22 Result Report - YES Securities

Posted On: 2021-07-25 07:18:52 (Time Zone: UTC)

(Rating: ADD, TP: Rs1,587, Upside: 3%)

Our view: We have cut FY22E EPS of ICICI Lombard by a massive 30% to factor in the weak performance during Q1 FY22. Health claim ratios doubled yoy to 150%+ during the quarter. We are presuming that there is no third wave and the claim ratios settle to FY21 levels during the remainder of current fiscal. For FY23E (combined for Bharti AXA) our EPS has been slightly revised upwards owing to stronger than expected performance by Bharti AXA in FY21. For FY22 we expect BAXA also to witness a sharp 52% fall in profits but expect to recoup most of it FY23 as synergies from the acquisition play out. Near term risks to the health portfolio will weigh on the stock price performance in the near term. However, over the longer term we believe a strong franchise with a potential to deliver a 18-20% RoE and a sustained improvement in combined ratios can be added on declines. Retain our ADD rating with a 1-year price target of Rs1,587.

- Net Earned Premium - NEP at Rs.27.1bn was higher than our estimates of Rs. 26.4bn, growth of 16% yoy, backed by strong performance across all major segments with growth of 37% in Fire segment and 19% growth in Health business. Motor segment saw a decent growth of 14% yoy. On Sequential basis NEP was up by 3%.

- Claims - Claims at Rs. 24.7 bn were higher than our estimate of Rs. 18.7bn and incurred claims ratio increased by 2140bps to 91.2% in Q1 FY22 from a year ago. Loss ratio were higher for Motor OD by 520bps, Motor TP by 40bps and Health loss ratio doubled. For fire segment the ratio declined by 1370bps.

- Underwriting Performance - Underwriting loss at Rs. 5082mn against our estimate of underwriting loss of Rs. 1026mn on back of higher claims. Combined ratio was at 121.3% v/s 99.7% yoy and 101.8% qoq.

Shares of ICICI Lombard General Insurance Company Ltd was last trading in BSE at Rs. 1491 as compared to the previous close of Rs. 1543.95. The total number of shares traded during the day was 43772 in over 5369 trades.

The stock hit an intraday high of Rs. 1516.15 and intraday low of 1469. The net turnover during the day was Rs. 65220493.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Automobile Sector - Monthly Quick View - Aug'21 - Mixed Performance across Segments - Reliance Securities

Axis Securities initiating coverage on ICICI Securities

Company Update - Minda Corporation - Q1FY22 - ICICI Direct

Quant Pick - PVR Ltd - ICICI Direct

Quant Pick - ONGC - ICICI Direct

Peak in the headline wholesale inflation is behind us - WPI August 2021 - Acuité Ratings

Sansera Engineering - IPO - Strong Outlook with Steady Cash Flow - Reliance Securities

APL Apollo Tubes - Journey from a semi-commodity player to a branded one - HDFC Securities

Nazara Technologies Ltd - Upbeat in medium-term, Uncertain over Long-term - YES Securities

IPO Review - Sansera Engineering Ltd - ICICI Direct

Overall index is still 0.3% lower than the pre-pandemic levels - IIP July 2021

YES SECURITIES on Monthly General Insurance & Mutual Funds Data

India urban logistics spaces expected to cross 7 million sq. ft by 2022: JLL

Neogen Chemicals - Breaking into the next orbit with a bang - HDFC Securities

Gladiator Stocks - Bharti Airtel Ltd - ICICI Direct

Gladiator Stocks - V-Guard - ICICI Direct

Balkrishna Industries - Industry export growth accelerates - ICICI Securities

HDFC Life Insurance - Exide Life Acquisition - Maintain ADD - YES Securities

Gladiator Stocks - Grindwell Norton - ICICI Direct

Gladiator Stocks - Godrej Properties - ICICI Direct

Monthly Auto Volumes - August 2021 - ICICI Direct

Stock Tales - Easy Trip Planners - ICICI Direct

IPO Review - Vijaya Diagnostic Centre Ltd - ICICI Direct

AU Small Finance Bank - Attrition at top level remains key challenge; business momentum sustained in Jul/Aug'21 - ICICI Securities

Gladiator Stocks - State Bank of India - ICICI Direct

Gladiator Stocks - PNC Infratech - ICICI Direct

Vijaya Diagnostic Centre Ltd - IPO Note - YES Securities

Consumer Durables Sector - Lockdown mars performance yet again - Institutional Research Desk at HDFC Securities

75% of the employees today want to be in office at least once a week as compared to 52% in October 2020: JLL

Gladiator Stocks - Safari Industries - ICICI Direct

Gladiator Stocks - Interglobe Aviation - ICICI Direct

IPO Review - Ami Organics Ltd - ICICI Direct

Q1FY22 GDP - 31st Aug 2021 - Acuité Ratings & Research

Avanti Feeds - Higher input prices hurt margins - ICICI Securities

Company Update - Restructuring - Aarti Industries - ICICI Direct

Q1FY22 Company Update - MM Forgings - ICICI Direct

Company Update - Arvind Fashions - ICICI Direct

Zomato - Can margins and multiples surprise? - ICICI Securities

Ujjivan Small Finance Bank - Top management change and lumpy provisioning concern to weigh on valuation in near term - ICICI Securities

Bharat Dynamics - Guided missile systems to drive orderbook and profit growth - ICICI Securities

Economy - Continued accommodation necessary despite inflationary risks: MPC minutes - ICICI Securities

InterGlobe Aviation - Annual report analysis: Liquidity management remains the mainstay in anticipation of traffic recovery - ICICI Securities

General insurance - Health remains dominant growth driver; Strong all-round performance by Bajaj Allianz - ICICI Securities

Earnings Wrap Q1FY22: Resilient earnings, limited impact of second Covid wave - ICICI Direct

Fine Organic Industries Results Review - In-line performance - HDFC Securities

Power Plus Sector Update - July witnessed strong ~10% generation growth - HDFC Securities

Information Technology Sector Update - 'Hit Refresh' - HDFC Securities

Maintain ADD on JK Cement - Healthy performance - HDFC Securities

Maintain BUY on Star Cement - Margin recovers on pricing gain - HDFC Securities

Maintain BUY on Sadbhav Engineering - Long road to recovery - HDFC Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020