Motilal Oswal reiterates 'buy' rating on ICICI Lombard with a target price of Rs 1,550

 Motilal Oswal has reiterated its 'buy' rating on ICICI Lombard General Insurance with a target price of Rs 1,550. The brokerage firm said that the company's strong underwriting performance and healthy growth in investment income will drive its earnings growth in the coming quarters.

Motilal Oswal said that ICICI Lombard's underwriting loss narrowed to Rs 1.5 billion in the second quarter of FY23 from Rs 1.9 billion in the first quarter. The brokerage firm attributed the improvement in underwriting performance to lower claims in the motor and fire segments.

Investment income also grew by 12% year-on-year to Rs 8.7 billion in the second quarter. Motilal Oswal said that the company's investment income is expected to continue to grow in the coming quarters, driven by higher yields.

Motilal Oswal has a price-to-earnings (P/E) multiple of 17.5 times for ICICI Lombard. The brokerage firm said that the company's valuation is attractive, given its strong growth prospects.

The brokerage firm has a target price of Rs 1,550 for ICICI Lombard, which implies a potential upside of 25% from the current market price.

Key takeaways from the article:

• Motilal Oswal has reiterated its 'buy' rating on ICICI Lombard.
• The brokerage firm has a target price of Rs 1,550 for the company, which implies a potential upside of 25% from the current market price.
• Motilal Oswal is positive on ICICI Lombard's underwriting performance and healthy growth in investment income.
• The brokerage firm believes that the company's valuation is attractive, given its strong growth prospects.