In Wednesday’s intraday trade, ICICI Lombard General Insurance Company’s shares fell 4% to Rs 1,083.55 on the BSE after the insurer’s gross direct premium revenue grew sluggishly 6.7% YoY and down 4.6% QoQ to Rs 4,977 crore in Q4FY23. The stock recorded a 52-week low of Rs 1,049.10 on March 16, 2023.

The country’s largest private insurer reported a 39.6% upside in net profit to Rs 436.96 crore in Q4FY23, assisted by a lower loss ratio and fall in underwriting losses. The insurer had reported a profit of Rs 312.51 crore in the year-ago period.

Market share continued steady at 8.2% for FY23, having improvement in the motor segment. Besides, the motor segment registered 9% YoY growth; within the health segment, retail and group grew 12% and 28%, respectively. The collective ratio declined 20 bps QoQ at 104.2%, with an underwriting loss of Rs 250 crore.

Aggregately, topline growth stayed healthy while gradually upgrading the combined ratio drives earnings. Healthy premium growth joined with steady market share residues encouraging. However, market share recovery and sustainability of improvement in the combined ratio are to be acted as catalysts for valuation ahead, ICICI Securities said.

Motilal Oswal Financial Services stated that ICICI Lombard conveyed surprisingly well performance in Q4FY23 on underwriting performance. Besides, motor segment growth predicts to back end with the company, waiting for the price rationalisation in the own damage (OD) segment.

In the health section, the price hike benefits and improving the agency channel’s efficiency should be interpreted as enhanced profitability.