Target: ₹2,240
CMP: ₹1,733.25
Over the last 25 years, ICICI Lombard has served 500 million customers while building digital infrastructure, strengthening distribution capabilities and enhancing customer engagement. FY26 reflects a shift toward monetising these investments through enterprise-wide execution.
The company’s outperformance in retail health has been a function of strengthening distribution; continued innovation; tech enhancement; and customer engagement.
Motor segment remains a cornerstone of the franchise, protecting over 250 million drivers since inception. FY26 witnessed a slow start due to low vehicle sales, which improved after GST rationalisation in H2FY26.
The general insurer’s distribution engine has been strengthened further with transition to a multi-line business model from a single-product business model to drive cross-selling, higher customer lifetime value, strong retention and agent productivity.
In FY26, it introduced a broader vision of intelligent transformation powered by artificial intelligence, building on an existing strong data foundation.
ICICI Lombard appears well positioned to harness the profitable growth opportunities in the under-penetrated general insurance sector. We expect GWP/PAT to expand at a CAGR of 12 per cent/19 per cent over FY26-28 as CoR declines to 101.7 per cent by FY28. Reiterate a Buy rating on the stock with a TP of ₹2,240 (based on 28x FY28E EPS).