ICICI Lombard Q1 Result Review - Motor Segment Remains A Growth Concern: Yes Securities
New expenses of management rules have not yet brought in pricing discipline among competitors expected by ICICI Lombard.
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Yes Securities Report
Result Highlights
Net premiums earned: ICICI Lombard General Insurance Company Ltd.'s net premiums earned grew by 4.3% QoQ, driven higher by health including personal accident segment.
Loss ratios: Overall loss ratio has improved by 10 basis points QoQ to 74.1%, where motor own damage and third party has evolved positively QoQ.
Expense control: Expense ratio fell -480 bps QoQ to 26.6% where opex fell - 31.3% QoQ and commissions rose by 509% QoQ.
Our view
The motor segment net earned premium grew 0.1%/3.3% QoQ/YoY. There has been no motor third party price hike due to which certain subsegments have become unviable. Health (including personal accident) NEP grew 16.2%/31.7% QoQ/YoY.
ICICI Lombard's management is excited that the investments made in retail health are poised to play out.
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