Past 10 year's financial track record analysis by Moneyworks4me indicates that ICICI Lombard General Insurance Company Ltd is a good quality company.
The key valuation ratios of ICICI Lombard General Insurance Company Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of ICICI Lombard General Insurance Company Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation Index Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 26.5% | 23.6% | 24.6% | 25.9% | 29.5% | 27.3% | 26.9% | 19.5% | 21.4% | 22.8% | - |
| Value Creation Index ⓘ | 1.4 | 1.1 | 1.2 | 1.3 | 1.6 | 1.4 | 1.4 | 0.7 | 0.9 | NA | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sales YoY Gr. | - | NA | NA | NA | NA | NA | NA | NA | NA | NA | - |
| Adj EPS ⓘ | 12 | 11.3 | 15.6 | 19 | 23.1 | 26.3 | 32.4 | 25.9 | 35.2 | 38.9 | 50.8 |
| YoY Gr. | - | -5.4% | 37.2% | 22% | 21.7% | 13.7% | 23.3% | -20.1% | 36% | 10.6% | - |
| BVPS (₹) ⓘ | 63.2 | 71 | 82.6 | 100 | 117.1 | 135 | 163.6 | 185.6 | 211.6 | 242.8 | 276.9 |
| Adj Net Profit ⓘ | 536 | 507 | 702 | 862 | 1,049 | 1,194 | 1,473 | 1,271 | 1,729 | 1,919 | 2,518 |
| Cash Flow from Ops. ⓘ | -97.9 | 511 | 1,628 | 2,390 | 2,976 | 3,433 | 1,774 | 809 | 2,290 | 2,407 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0.3 | 0.2 | 0.2 | 0.1 | 0.3 | 0.3 | 0 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | NA | NA | NA | NA | ||||
| Adj EPS ⓘ | 14% | 11% | 6.3% | 10.6% | ||||
| BVPSⓘ | 16.1% | 15.7% | 14.1% | 14.7% | ||||
| Share Price | - | 11.6% | 12% | 6.7% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33.3 | 17.2 | - |
| Op. Profit Mgn % ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
| Net Profit Mgn % ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
| Debt to Equity ⓘ | 0 | 0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0 | 0 | 0 | - |
| Working Cap Days ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash Conv. Cycle ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -722 |
Return on Equity has increased versus last 3 years average to 19.60%
Sales growth is good in last 4 quarters at 16.75%
Sales growth has been subdued in last 3 years 0.00%
Net Profit has been subdued in last 3 years 6.32%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 50.8 | - |
| TTM Sales (₹ Cr.) | 18,943 | - |
| BVPS (₹.) ⓘ | 276.9 | - |
| Reserves (₹ Cr.) ⓘ | 13,229 | - |
| P/BV ⓘ | 6.40 | - |
| PE ⓘ | 34.87 | - |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 1477.45 / 2285.85 |
| All Time Low / High (₹) | 619.00 / 2285.85 |
| Market Cap (₹ Cr.) | 87,818 |
| Equity (₹ Cr.) | 495.7 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 18.8 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Overall ICICI Lombard grew faster than industry in some segments. Higher investment income resulted in steady profitability.
Note- Long term Health Insurance Premium impacted due to new 1/n accounting rule which came into effect in Q3FY25, excluding the 1/n rule, the growth in premium would have been 4.8%. Previously, barring the motor insurance, the premium on long term products such as health insurance and other line of products were recognized on the year of underwriting itself. Under the new rule, the reporting of the premium earned has to be spread over the period of the long term policy, with the commissions paid to also be spread over the period of the policy.
Initiating coverage: ICICI Lombard
ICICI Lombard General Insurance Company Limited is the leading general insurance companies in India. It is a joint venture between ICICI Bank, and Fairfax Financial Holdings Limited, a global insurance and reinsurance company.
Industry
Indian non-life insurance is highly under penetrated with non-life penetration (premium as percentage of GDP) at just 1% as on FY21 compared to world average of 4.1% and advance EMEA average of 3.3%
The size of the non-life insurance industry in India is 2.2 lakh Cr as on March 2022 on the basis of gross direct premium income (GDPI) and has been growing at 16% CAGR in the past 10 years.
Business
Health Insurance: ICICI Lombard offers comprehensive health insurance plans that cover medical expenses, hospitalization, surgeries, and other healthcare-related costs. They also provide policies specifically designed for critical illness coverage and personal accident insurance.
Motor Insurance: ICICI Lombard offers car insurance, two-wheeler insurance, and commercial vehicle insurance. These policies provide coverage against accidents, theft, third-party liability, and damage to the insured vehicle.
Property & Casualty (P&C) Insurance: ICICIL operates P&C insurance under Fire, Marine, Engineering, Liability segments.
Fire insurance is designed to protect various types of properties, including factories, buildings, offices, warehouses, and other structures, against losses caused by fire and other specified risks. IC holds 12.8% market share under this segment with loss ratio of 49.3% in FY23.
Engineering insurance aims to safeguard businesses from losses arising due to breakdowns or damage to plant, machinery, and engineering equipment, including mechanical, electrical, and electronic equipment. IC holds 15.4% market share under this segment with loss ratio of 55.1% in FY23.
Marine insurance primarily involves insuring ships, boats, and similar watercraft, as well as the goods being transported on them. Marine hull insurance pertains to coverage for the physical structure of the vessel itself, while marine cargo insurance focuses on insuring the goods being carried aboard the vessel. IC holds 17.8% market share under this segment with loss ratio of 72.4% in FY23.
Liability insurance primarily entails providing coverage for potential liabilities and legal obligations. It protects individuals or businesses from financial losses resulting from claims or lawsuits filed against them due to bodily injury or property damage caused to third parties. IC holds 16.6% market share under this segment with loss ratio of 63% in FY23.
Business Performance
|
|
FY23 |
FY22 |
FY21 |
|
Gross written premium |
14,320 |
18,562 |
21,772 |
|
Net Earned Premium |
10,013 |
13,032 |
14,822 |
|
Combined Ratio |
104.5% |
108.8% |
99.8% |
|
Solvency Ratio |
2.51 |
2.46 |
2.90 |
Risks
Inability to reduce operating and commission expenses.
Competitive intensity and low barrier to entry in the market could reduce growth.
Higher than expected claims.
Competition
ICICI Lombard faces competition from various general private (HDFC ergo, SBI general), public (New India, United India), Standalone health (Star Health, CARE) and fintech (Acko, Digit) in various segments.
Gross Direct Premium Income (GDPI) of the Company stood at Rs. 21,025 Cr in FY2023 compared to 17,977 Cr in FY2022, a growth of 17% .GDPI of the Company was at 49.77 billion in Q4FY2023 as against 4,666 Cr in Q4FY2022, a growth of 6.7%. Combined ratio stood at 104.2% in Q4 FY2023 compared to 103.2% in Q4 FY2022. Profit after tax grew by 36.0% to 1,729 Cr in FY2023 compared to 1,271 Cr in FY2022. PAT grew by 39.8% to 437 Cr in Q4 FY2023.
Result was negative due to higher than expected combined ratio.
ICICI Lombard General Insurance Company Ltd
Market Cap 56,771 Cr
CMP 1156
P/E 35.4
|
Results |
INR Cr |
YoY Growth |
Comments |
|
Gross Premiums Written |
5,599.7 |
16.9% |
Driven by growth in Motor, Health and Property & Causality segment |
|
Operating Profit |
276.4 |
1.3% |
Operating expenses increased by 15.8% to 1244.8 Cr |
|
PAT |
352.5 |
11% |
Includes a 128 Cr tax provision reversal |
Key Highlights –
· Retail Health distribution grew by 24.2%, while retail health agency vertical grew by 40.1%.
· ICICI Lombard saw 15-20% increase pricing in group health insurance segment.
· Commission expenses declined by 14% to 174.4 Cr on yearly basis.
· Claims incurred increased by 15.7% to 2,666.3 Cr. Claims Ratio at 70.3%.
· Combined ratio for 9MFY2023 at 104.6% vs. 111.0% in 9MFY2022. Combined ratio improved by 0.1% to 104.4% on yearly basis.
Management Outlook –
· Management expects health segment to grow at 40% based on investments made to scale.
· Management has made conservative reserve provisions for crop insurance business which came with Bharti AXA.
· Management guided on combined ratio to be at 104% levels in FY2 and is expected to start declining in FY24.
· Management guided on Expense ratio to remain elevated as investments in retail health and digitalization continues. However, with technology migration of Bharti AXA business being completed, synergy benefits to be visible.
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income From Investments | 178 | 227 | 309 | 406 | 460 | 464 | 505 | 703 | 732 | 845 |
| Other Income ⓘ | 2 | 14 | 2 | 8 | 14 | 16 | 12 | 3 | 44 | 5 |
| Expenses | 18 | 19 | 99 | 74 | 148 | 160 | 574 | 864 | 984 | 144 |
| Profit Before Tax | 691 | 708 | 910 | 1,196 | 1,598 | 1,697 | 1,954 | 1,684 | 2,113 | 2,555 |
| Tax ⓘ | 155 | 200 | 208 | 334 | 549 | 503 | 481 | 413 | 383 | 637 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Profit | 536 | 507 | 702 | 862 | 1,049 | 1,194 | 1,473 | 1,271 | 1,729 | 1,919 |
| Adjusted EPS (₹) | 11.99 | 11.34 | 15.56 | 18.98 | 23.10 | 26.27 | 32.40 | 25.89 | 35.21 | 38.94 |
| Dividend Payout Ratio (%) | 17% | 26% | 23% | 21% | 26% | 13% | 25% | 35% | 28% | 28% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Share Capital ⓘ | 447 | 448 | 451 | 454 | 454 | 454 | 455 | 491 | 491 | 493 |
| Reserve and Surplus | 2,377 | 2,728 | 3,274 | 4,087 | 4,866 | 5,680 | 6,981 | 8,619 | 9,901 | 11,467 |
| Fair Value A/C | 356 | 61 | 175 | 186 | 80 | -95 | 163 | 83 | 51 | 245 |
| Borrowings ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Policy Holders Fund | 0 | 248 | 503 | 548 | 259 | -334 | 517 | 276 | 162 | 745 |
| Funds For Appropriations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities ⓘ | 3,179 | 3,485 | 4,889 | 5,760 | 6,144 | 6,191 | 8,601 | 9,724 | 10,641 | 12,985 |
Assets | ||||||||||
| Investment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Loans | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Net block | 381 | 373 | 372 | 368 | 448 | 664 | 613 | 566 | 539 | 607 |
| Total Assets ⓘ | 3,179 | 3,485 | 4,889 | 5,760 | 6,144 | 6,191 | 8,601 | 9,724 | 10,641 | 12,985 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | -98 | 511 | 1,628 | 2,390 | 2,976 | 3,433 | 1,774 | 809 | 2,290 | 2,407 |
| PBT ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Adjustment ⓘ | 511 | 1,339 | 2,574 | 3,717 | 4,983 | 5,409 | 3,261 | 2,526 | 4,765 | 5,128 |
| Changes in Working Capital ⓘ | -17 | 6 | -17 | -42 | -14 | 34 | 16 | -65 | -190 | 32 |
| Tax Paid ⓘ | -592 | -834 | -930 | -1,285 | -1,993 | -2,010 | -1,503 | -1,652 | -2,284 | -2,753 |
| Cash Flow From Investing Activity ⓘ | 171 | -310 | -1,990 | -1,896 | -2,856 | -3,382 | -1,367 | 112 | -1,685 | -1,921 |
| Capex | -52 | -52 | -53 | -75 | -116 | -302 | -79 | -72 | -120 | -189 |
| Net Investments | -363 | -976 | -2,714 | -2,747 | -3,944 | -4,597 | -3,118 | -2,205 | -4,086 | -4,444 |
| Others ⓘ | 586 | 718 | 777 | 926 | 1,204 | 1,518 | 1,829 | 2,389 | 2,521 | 2,713 |
| Cash Flow From Financing Activityⓘ | -93 | -148 | 361 | -96 | -310 | -420 | -212 | -879 | -695 | -355 |
| Net Proceeds from Shares ⓘ | 12 | 6 | 38 | 35 | 4 | 4 | 10 | 41 | 21 | 165 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | 0 | -155 | -160 | -131 | -314 | -423 | -222 | -436 | -495 | -520 |
| Dividend Paid ⓘ | -89 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Others ⓘ | -16 | 0 | 483 | 0 | 0 | 0 | 0 | -485 | -220 | 0 |
| Net Cash Flow ⓘ | -20 | 53 | -1 | 398 | -190 | -369 | 195 | 42 | -90 | 131 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | ||||||||||
| ROCE (%) | ||||||||||
| Asset Turnover Ratio | 1.49 | 1.45 | 1.47 | 1.3 | 1.41 | 1.52 | 1.35 | 1.42 | 1.46 | 1.43 |
| PAT to CFO Conversion(x) | -0.18 | 1.01 | 2.32 | 2.77 | 2.84 | 2.88 | 1.2 | 0.64 | 1.32 | 1.25 |
| Working Capital Days | ||||||||||
| Receivable Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Inventory Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Payable Days | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
ICICI Lombard General Insurance Company Ltd. is one of the leading private sector general insurance companies in India. At ICICI Lombard, customer satisfaction is its motto. Stretching ourselves and going beyond the ordinary for the satisfaction and smiles of its customers is something that is deeply embedded in its DNA. Be it an untoward incident due to the unpredictability of nature or losses suffered due to accidents or medical challenges, it remains committed to be at people side and serve people always. Its value proposition is driven by a promise to be the best partner for its customers. With a promise to ensure quick and smooth claims processing, its unmatched services are there to assist people at all times.
Business area of the company
The company provides general insurance solutions to secure people and their family against unexpected and untoward events. With ICICI Lombard, people can avail protection solutions for business, personal and project liabilities across rural as well as urban areas in India. It offers insurance coverage for motor, health, travel, home, student travel and more.
Products
Services
Awards and Recognitions
Milestones
2001
2004
2010
2014
2016
2017
2019
2020
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
100% Secure Process
Account Discovery
- OTP from CAMS
Account Linking for Stocks & MF
- One OTP per link Eg. NSDL, CDSL, CAMS, KFin etc.
One Click Upload for your Current Portfolio and Future Transactions!
Don't miss out! First 10 users today get it FREE
With this 4 hrs Masterclass, you’ll be able to:
Download APP
