ICICI Lombard trades flat post-June quarter nos; company's profit rises 12% to Rs 390 crore

ICICI Lombard share price NSE, ICICI Lombard Q1 results: Shares of ICICI Lombard traded flat in the morning deals on Wednesday, a day after the general insurance company released its financial results for the quarter ended June 2023 (Q1FY24). The insurance company reported an 11.8 per cent growth in net profit at Rs 390 crore for the quarter under review, driven by capital gains from investments and a higher premium income the day before.

The stock of ICICI Lombard opened at Rs 1,338.1 on the NSE.The counter finished up 1 per cent at Rs 1,365.15 apiece on NSE. ICICI Lombard's premium income, or gross direct premium income (GDPI), rose 18.9 per cent to Rs 6,387 crore, beating the industry growth of 17.9 per cent in the June quarter.

Excluding crop insurance, ICICI Lombard's GDPI growth was 19.2 per cent, higher than the industry growth of 17.4 per cent, the company's statement read. The combined ratio, a key profitability metric, improved to 103.8 per cent in the reporting quarter compared to 104.1 per cent in Q1 FY23. Excluding the impact of the cyclone of Rs 35 crore, the combined ratio was 102.9 per cent for the period under review.

A robust market helped the company book higher capital gains of Rs 123 crore in the first quarter of the current fiscal year as against Rs 32 crore a year ago, increasing the net income by 11.8 per cent to Rs 390 crore from Rs 349 crore a year ago. The net income was also boosted by a reversal of a tax provision of Rs 128 crore from Q2 FY23, the company said. Read more 

ICICI Lombard share price target: Should you buy, sell, or hold?

• CLSA has maintained a buy call with a target price of Rs 1,550.
• Morgan Stanley has maintained an overweight rating with a target price of Rs 1,555.
• Jefferies has maintained a buy call and has raised the target price to Rs 1,630 from Rs 1,560.
• HSBC has maintained a buy call and has raised the target price to Rs 1,525 from Rs 1,540.

ICICI Lombard share price history

ICICI Lombard's stock has given a positive return of over 8 per cent in the last 12 months (since July 19, 2022). In comparison, the headline index, Nifty 50, has rallied nearly 21 per cent.

(with PTI inputs)

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