The majority of readers are probably already aware that within the last three months, ICICI Lombard General Insurance’s (NSE:ICICIGI) stock has dramatically increased by 10%. We question if this is the case in this case, given the market tends to reward good financials over the long run. We have chosen to highlight ICICI Lombard General Insurance’s return on equity in this piece. Return on equity, or ROE, is a helpful metric for evaluating a company’s ability to make a profit on the capital that its shareholders have invested in it. Stated differently, it demonstrates the company’s ability to generate profits from the capital made by shareholders.
ICICI Lombard IPO Details
ICICI Lombard issued 17.7 million policies and earned INR107.25 billion in gross direct premium income in the 2017 fiscal year. This translates to a market share of 8.4% for all non-life insurers in India and 18.0% for non-life insurers in the private sector. In order to serve individual, corporate, and government clients, its main distribution channels include digital, bank partners, individual agents, brokers, and other corporate agents. Thanks to its distribution network, we can connect with clients in 618 of India’s 716 districts.
About the Company –ICICI Lombard
ICICI Lombard was among the first few private companies to start operations in the sector in fiscal 2001, and as of fiscal 2017, it was the largest non-life insurer in the Indian private sector based on gross direct premium income. This is a position it has held since fiscal 2004. It provides a wide range of products through various distribution channels, such as liability, engineering, personal injury, fire, health, crop/weather, and automobile insurance.
Established in March 2017, the company was initially a joint venture between ICICI Bank Limited, the largest private-sector bank in India based on consolidated total assets, with an asset base of INR9.9 trillion, and Fairfax Financial Holdings Limited, a holding company based in Canada that conducts property and casualty insurance through its subsidiaries.
