Review

ICICI LOMBARD GENERAL INSURANCE

Ticker : 540716
FV : Rs 10 
52-Week H/L : RS 1439.90/805.60

We had previously recommended ICICI Lombard General Insurance in vol. 36, no. 1 dated October 28, 2019, when the scrip was trading at Rs 1,349.90. On the quarterly front, for Q4FY20, the company reported a net premium of Rs 2,431.53 crore, which is a decrease of 1.19 as compared to Rs 2,461.02 crore reported in Q4FY19. The company posted a net commission of Rs 170.38 crore for Q4FY20, which is a significant rise from Rs 63.16 crore posted in Q4FY19. For Q4FY20, the company’s operating profit expanded by 60.34 per cent to Rs 475.82 crore from Rs 296.74 crore posted in Q4FY19. It gained a net profit of Rs 281.93 crore for Q4FY20 thus, clocking a growth of 23.80 per cent when compared to the net profit of Rs 227.73 crore gained in Q4FY19. The company maintains a strong position in the industry as one of the leading private sector non-life insurers in India. Hence, we recommend a HOLD.