ICICI Lombard General Insurance, one of India’s leading private sector general insurers, saw a sharp uptick in its share price in Wednesday’s trade, climbing 8.6% to reach a 3-month high of ₹2,014 apiece. The rally came after analysts remained upbeat about the stock following the company’s strong September-quarter results.
For Q2 FY26, the company reported a net profit of ₹820 crore, up 18% year-on-year (YoY), supported by robust demand in the retail health insurance segment and a rebound in vehicle sales.
Premiums from the retail health segment surged 50% YoY, while the corporate health segment grew about 14%. Demand for health insurance in India has continued to rise amid increasing medical costs and heightened awareness, particularly since the COVID-19 pandemic.
Premiums in the motor segment rose about 10% to ₹2,730 crore as tax cuts fuelled auto demand towards the end of the quarter after a sluggish few months.
“The company’s retail health segment continues its strong momentum, driven by effective customer acquisition and significant traction for its ‘Elevate’ product, leading to market share gains,” said Motilal Oswal in a note.
On the motor side, the brokerage noted that ICICI Lombard outperformed the industry in terms of profitability despite pricing pressure, aided by strong underwriting discipline. The company’s combined ratio, a key measure of underwriting profitability, stood at 105.1%, slightly higher than 104.5% a year earlier, but came in line with analysts’ estimates.
A ratio below 100% indicates that an insurer earns more in premiums than it spends on claims and expenses.
Analysts see ICICI Lombard General Insurance share price rising up to ₹2,340
Brokerages maintained a positive view on ICICI Lombard General Insurance after its strong Q2FY26 performance, with most raising their target prices on expectations of sustained growth across health and motor segments.
HSBC reiterated its ‘Buy’ call with a target price of ₹2,250, citing a 5% PAT beat driven by strong retention and investment income, though it flagged a higher combined ratio and trimmed earnings estimates accordingly.
Morgan Stanley maintained an ‘Equal weight’ rating with a price target of ₹2,035, noting PAT outperformance on higher investment income but weaker underwriting results, adding that sustained growth remains crucial given the stock’s rich valuation.
Motilal Oswal has raised its net earned premium (NEP) estimates for ICICI Lombard to 6%, 7% and 7% for FY26, FY27 and FY28, driven by GST-related benefits boosting growth in the motor segment. However, EPS estimates were revised up by only 1%, 2% and 3% over the same period due to a higher combined ratio in the motor business.
The brokerage reiterates a ‘Buy’ rating with a target price of ₹2,300, based on 30x Sep’27E EPS.
Elara Capital upgraded the stock to ‘Buy’ from ‘Accumulate’ and raised its price target to ₹2,250 from ₹1,960, highlighting 18% YoY PAT growth, strong retail health traction, and robust return ratios. It expects H2FY26 growth to pick up with health and motor demand, aided by GST-related benefits, and sees the combined ratio improving to 101–102% by FY27E.
Nuvama retained its ‘Buy’ rating with a price target of ₹2,340, noting modest 1.6% GWP growth and a combined ratio of 105.1% (103.8% ex-CAT). It highlighted solid investment income and PAT growth of 18% YoY, while maintaining its positive stance and rolling forward valuations to Sep-FY27E.
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