Gopal Balachandran, CFO of ICICI Lombard General Insurance intends to maintain a growth rate that surpasses industry levels by 100-200 basis points (bps).

For the last 23 years, the general insurance industry in India has grown at 15-16% annually, he noted in an interview with CNBC-TV18.

Balachandran pointed to motor, health, and commercial insurance as the company's focus areas. While the company continues to outperform in the corporate health segment, the competition is firming up, he said.

ICICI Lombard's net profit for Q2 of FY24 declined to ₹577.3 crore from ₹590.5 crore in the corresponding quarter of the previous year, the company remains committed to its strategic objectives.

Balachandran discussed the company's efforts to bring down the combined ratio, which had been in the range of 102-104%. "Our objective is to reduce it to 102% by the end of FY25, and we are on course to achieve that goal," he confirmed.

Regarding the split between the loss ratio and the expense ratio, Balachandran explained that it would depend on the mix of businesses written. However, he noted that from a loss ratio perspective, ICICI Lombard has typically maintained a range of around 70-75%.

Out of the three brokerages assessing ICICI Lombard General Insurance Company, two issued a 'buy' recommendation, anticipating a stock price increase of up to 20% over the next 12 months. This positive outlook follows the insurer's premium growth in the second quarter.

HSBC gave a 'buy' rating with a target price of ₹1,578 per share, translating to a potential gain of 17%, primarily due to the robust growth in premiums.

CLSA also has a 'buy' on ICICI Lombard with a target price of ₹1,640 per share, a potential increase of 20%.

In contrast, analysts at Macquarie have a more cautious stance, with an 'underperform' rating on the stock and a target price of ₹995, which is 26% below the current price.

ICICI Lombard shares were trading 1.48% up at ₹1,378.40 on BSE. The share price had remained flat over the last month.

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(Edited by : Shweta Mungre)