ICICI Lombard shares gain over 7%, log biggest intraday jump in 8 months on Q3FY24 earnings

livemint.com:

₹1,476 apiece. This was the stock's biggest intraday jump since May 2023. The notable surge in shares today is attributed to the release of the company's Q3FY24 earnings on Tuesday post market hours, reporting a 22.4% YoY improvement in net profit to ₹431 crore.

In the same period last year, the company posted a net profit of ₹353 crore. The net premium income came in at ₹4,690 crore in Q3FY24, beating the Street estimates. Its solvency ratio improved 256% YoY in Q3.

Also Read: Q3 results: Should you buy Federal Bank shares after Q3 earnings? Here’s what brokerages say It reported an improvement in the claims ratio to 68.8% in Q3FY24 from 70.7% in Q2 FY24 and 70.3% in Q3FY23. The claims ratio in the health business improved, likely reflecting better pricing in the group business, said domestic brokerage firm Kotak Institutional Equities. On the other hand, Motor OD reported an 810 basis point YoY improvement in the claims ratio to 64.9% in Q3FY24 (though a tad higher than 64.1% in 2QFY24), likely reflecting better portfolio selection and improvement in the industry’s claims ratio, said the brokerage.

Meanwhile, the company, in its earnings report, has indicated early signs of competitive intensity easing and growth returning to business. Following the company's December quarter performance, Kotak Institutional Equities revised its target price higher to ₹1,400 apiece from an earlier price of ₹1,300 but retained its 'reduce' rating on the stock. However, the stock crossed the brokerage's target price in today's session.