ICICI Lombard falls 4% post Q4 results: Here's what the brokerages say

ICICI Lombard was trading at ₹1,801.90, down 1.14 per cent from Friday's close of ₹1,822.60 on the National Stock Exchange

ICICI Lombard share price: Shares of ICICI Lombard General Insurance Company fell over 4 per cent to hit an intraday low of ₹1,745.60 after the company reported a 1.9 per cent decline in profit after tax (PAT) for the March 2025 quarter (Q4 FY25) to ₹510 crore from ₹519 crore in Q4 FY24. However, the company’s Gross Direct Premium Income (GDPI) grew 2.3 per cent to ₹6,211 crore in Q4 FY25 as against ₹6,073 crore in the year-ago period. 

 

The board of directors of the company has proposed a final dividend of ₹7 per share for FY25, subject to the approval of shareholders in the upcoming annual general meeting. The overall dividend for FY25 including the proposed dividend is ₹12.50 per share. For the complete FY25, the company’s profit after tax increased 30.7 per cent to ₹2,508 crore compared to ₹1,919 crore in the previous fiscal year. 

 

 

At 11:05 AM, the stock was trading at ₹1,801.90, down 1.14 per cent from Friday’s close of ₹1,822.60 on the National Stock Exchange (NSE). In comparison, the benchmark NSE Nifty50 index was trading at 23,280.70, down 47.85 points or 0.21 per cent. The stock is trading around 24 per cent down from its 52-week high of ₹2,301.90, which it touched on September 23, 2024. 

 

Given the muted Q4 numbers, brokerage firms have cut the target prices for the company while maintaining the rating at ‘Buy’.  Also Read: ICICI Lombard General Q4FY25 results: Profit down 1.9% at Rs 510 crore

 

Here’s what the brokerages say: 

Nuvama Institutional Equities

According to the brokerage, ICICI Lombard delivered a muted 10.2 per cent year-on-year growth in gross written premium (GWP) due to a slowdown in new vehicle sales and deferred accounting of long-term products. The combined ratios fell 23 basis points quarter-on-quarter but increased by 26 bps to 102.5 per cent, as the loss ratio grew 298 bps Y-o-Y and 578 bps Q-o-Q. However, the increase in loss ratios was compensated by lower expense ratios, which improved by 272 bps Y-o-Y and 601 bps Q-o-Q to 30.9 per cent.

 

Due to slower growth in new auto sales, Nuvama IE has lowered its FY26E and FY27E adjusted profit after tax (APAT) estimates by 6.8 per cent and 6.7 per cent, respectively, resulting in a fall in target price to ₹2,100 from ₹2,400. This implies a price-to-earnings ratio of 38.3 times for FY26E and 33.0 times for FY27E. The brokerage has maintained its ‘Buy’ rating on the stock.

 

JM Financial 

The brokerage says ICICI Lombard has consistently delivered strong results in the recent past despite a tight operating environment. The company delivered COR of 102.5 per cent in Q4 and 102.8 per cent in FY25. Even after adjusting catastrophe losses of ₹940 million in the first half and the effect of 1/n guidelines, the company’s Combined Ratio came in at 102.2 per cent for FY25. In addition, the company’s GDPI growth improved from Q3 lows of 4.8 per cent (adjusted) in Q3 to 8.0 per cent (2.3 per cent reported) in Q4,. The brokerage has reduced the target price to Rs 2,150 from Rs 2,222 and maintained a ‘Buy’ rating on the stock. 

Motilal Oswal Financial Services

Despite the general insurance industry’s slow growth rate in FY25, ICICI Lombard continues to focus on profitable growth across segments, with motor expected to grow in double digits driven by target efforts in older vehicles and commercial vehicles, along with improved portfolio segmentation, according to MOFSL report.

 

The brokerage expects a growth recovery in FY26 and stable environment in profitability, with combined ratio improving to 101.5 per cent by FY27. The profit after tax is likely to grow by 14 per cent and 16 per cent in FY26 and FY27, respectively. 

It maintains 'Buy' rating on the stock with a target price of ₹2,200, based on EPS estimate of 33 times for March 2027.