NSEI:ICICIGI

Stock Analysis Report

ICICI Lombard General Insurance

Executive Summary

ICICI Lombard General Insurance Company Limited provides various general insurance products in India.


Snowflake Analysis

High growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has ICICI Lombard General Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ICICIGI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.9%

ICICIGI

-0.2%

IN Insurance

-1.2%

IN Market


1 Year Return

35.7%

ICICIGI

41.6%

IN Insurance

6.4%

IN Market

Return vs Industry: ICICIGI exceeded the Indian Insurance industry which returned 41.1% over the past year.

Return vs Market: ICICIGI exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

ICICIGIIndustryMarket
7 Day-8.9%-0.2%-1.2%
30 Day-7.7%-7.4%-3.6%
90 Day-7.7%-3.6%-0.5%
1 Year36.5%35.7%42.5%41.6%8.4%6.4%
3 Yearn/a21.6%12.9%20.9%14.3%
5 Yearn/a20.5%7.9%29.8%18.0%

Price Volatility Vs. Market

How volatile is ICICI Lombard General Insurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ICICI Lombard General Insurance undervalued compared to its fair value and its price relative to the market?

49.18x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICICIGI (₹1286.9) is trading above our estimate of fair value (₹439.55)

Significantly Below Fair Value: ICICIGI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ICICIGI is good value based on its PE Ratio (51.3x) compared to the Insurance industry average (51.9x).

PE vs Market: ICICIGI is poor value based on its PE Ratio (51.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: ICICIGI is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ICICIGI is overvalued based on its PB Ratio (9.7x) compared to the IN Insurance industry average (8.4x).


Next Steps

Future Growth

How is ICICI Lombard General Insurance forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICICIGI's forecast earnings growth (22.9% per year) is above the savings rate (6.5%).

Earnings vs Market: ICICIGI's earnings (22.9% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ICICIGI's revenue (12.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: ICICIGI's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ICICIGI's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has ICICI Lombard General Insurance performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICICIGI has a high level of non-cash earnings.

Growing Profit Margin: ICICIGI's current net profit margins (10.2%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: ICICIGI's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: ICICIGI's earnings growth over the past year (10.3%) is below its 5-year average (18.2% per year).

Earnings vs Industry: ICICIGI earnings growth over the past year (10.3%) underperformed the Insurance industry 10.3%.


Return on Equity

High ROE: ICICIGI's Return on Equity (18.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ICICI Lombard General Insurance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ICICIGI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ICICIGI's debt is covered by short term assets (assets are 21.9x debt).


Financial Institutions Analysis

Asset Level: ICICIGI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ICICIGI has a sufficient allowance for bad loans.

Low Risk Liabilities: ICICIGI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ICICIGI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ICICIGI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ICICIGI has an appropriate level of bad loans.


Next Steps

Dividend

What is ICICI Lombard General Insurance's current dividend yield, its reliability and sustainability?

0.57%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: ICICIGI's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: ICICIGI's dividend (0.54%) is low compared to the top 25% of dividend payers in the Indian market (2.61%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ICICIGI has been paying a dividend for less than 10 years.

Growing Dividend: ICICIGI's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.9%), ICICIGI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ICICIGI's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Bhargav Dasgupta (53yo)

10.8yrs

Tenure

₹63,390,000

Compensation

Mr. Bhargav Dasgupta, PGDM, IIM Bangalore, B.E. (Mechanical), has been the Chief Executive Officer and Managing Director at ICICI Lombard General Insurance Company Limited since May 1, 2009. Mr. Dasgupta s ...


CEO Compensation Analysis

Compensation vs Market: Bhargav's total compensation ($USD879.32K) is about average for companies of similar size in the Indian market ($USD1.14M).

Compensation vs Earnings: Bhargav's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bhargav Dasgupta
MD, CEO & Director10.8yrs₹63.39m0.083% 483.4m
Gopal Balachandran
CFO & Chief Risk Officer8.3yrs₹25.16m0.056% 326.0m
Alok Agarwal
Chief Marketing Officer-Wholesale & Executive Director9.1yrs₹34.23m0.14% 803.3m
Sanjeev Mantri
Chief Marketing Officer of Retail & Executive Director4.8yrs₹38.95m0.00011% 643.5k
Vikas Mehra
Company Secretary0yrs₹8.71m0.0030% 17.4m
Girish Nayak
Chief Customer Service0yrsno data0.00088% 5.1m
Vinod Mahajan
Chief Investment Officer1.3yrsno data0.0030% 17.6m
Lokanath Kar
Chief Legal & Compliance Officer0yrsno datano data
Jerry Jose
Head of Human Resources0yrsno datano data
Palepu Sarma
Head of Government Department0yrsno datano data

8.3yrs

Average Tenure

48yo

Average Age

Experienced Management: ICICIGI's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bhargav Dasgupta
MD, CEO & Director10.8yrs₹63.39m0.083% 483.4m
Alok Agarwal
Chief Marketing Officer-Wholesale & Executive Director9.1yrs₹34.23m0.14% 803.3m
Sanjeev Mantri
Chief Marketing Officer of Retail & Executive Director4.8yrs₹38.95m0.00011% 643.5k
Lalita Gupte
Non-Executive Chairperson of the Board1.3yrs₹2.31m0.00039% 2.3m
Sandeep Batra
Additional Non Executive Director1.3yrsno datano data
Vishakha Mulye
Non-Executive Non-Independent Director1.3yrsno data0.061% 354.0m
Uday Chitale
Independent Non-Executive Director3.8yrs₹2.42mno data
Suresh Kumar
Independent Non-Executive Director3.7yrs₹1.96mno data
Ashvin Parekh
Independent Non-Executive Director5.8yrs₹2.42mno data
Ved Chaturvedi
Independent Non-Executive Director3.6yrs₹2.02mno data

3.8yrs

Average Tenure

53yo

Average Age

Experienced Board: ICICIGI's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ICICIGI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ICICI Lombard General Insurance Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ICICI Lombard General Insurance Company Limited
  • Ticker: ICICIGI
  • Exchange: NSEI
  • Founded: 2000
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: ₹585.035b
  • Shares outstanding: 454.45m
  • Website: https://www.icicilombard.com

Number of Employees


Location

  • ICICI Lombard General Insurance Company Limited
  • 401 & 402, Interface 11
  • 4th Floor
  • Mumbai
  • Maharashtra
  • 400064
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540716BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2017
ICICIGINSEI (National Stock Exchange of India)YesEquity SharesININRSep 2017

Biography

ICICI Lombard General Insurance Company Limited provides various general insurance products in India. The company offers insurance products, such as travel, motor, crop/weather, cattle, health, fire, personal accident, marine, engineering, liability, and home and cyber insurance products, as well as provides reinsurance services. It serves customers through body corporates, as well as small, micro, and medium enterprises; state and central governments, and rural customers; and agents, brokers, bancassurance, telesales, direct alliances, motor insurance service providers, and online platforms. The company was incorporated in 2000 and is based in Mumbai, India. ICICI Lombard General Insurance Company Limited is a subsidiary of ICICI Bank Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:20
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.