Market share remained steady at 8.2 per cent for FY23, with some improvement in motor segment. Among products, motor segment registered 9 per cent YoY growth while within health segment, retail and group grew 12 per cent and 28 per cent YoY, respectively. Combined ratio has declined 20 bps QoQ at 104.2 per cent and posted an underwriting loss of Rs 250 crore.
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On an aggregate basis, topline growth remained healthy while a gradual improvement in combined ratio is driving earnings. Healthy premium growth coupled with steady market share remains encouraging. A gradual move towards reduction in combined ratio generates confidence. However, further recovery in market share and sustainability of improvement in combined ratio needs to be seen to act as catalyst for valuation ahead, ICICI Securities said in a note.
ICICI Lombard delivered better-than-expected performance in Q4FY23 on underwriting performance. Going ahead, growth in the motor segment is likely to be back ended with the company waiting for the rationalization of pricing in the own damage (OD) segment, Motilal Oswal Financial Services said.
On the health segment, the benefits of price hike and improving efficiency of the agency channel should translate into improved profitability. Synergy benefits from Bharti AXA merger (technology related), scale benefits, and improvement in mix on health business (higher share of retail health) should aid in improving the combined ratio and RoE over the next couple of years, the brokerage firm added.
First Published: Apr 19 2023 | 10:04 AM IST