ICICI Lombard Launches 'Elevate' Health Insurance To Expand Retail Sector, Says Jefferies

ICICI Lombard General Insurance Co. has launched its latest health insurance product 'Elevate', marking its entry into the retail health vertical—a move previously avoided by the company, according to Jefferies.

Jefferies noted that the product includes several industry-first features and anticipates a positive reception from customers and agents.

The brokerage highlighted that ICICI Lombard holds a mere 3% market share in retail health, contrasting with its 9% share in the broader health segment, primarily due to concerns over claims.

Despite this, Motilal Oswal Financial Services Ltd. observed that ICICI Lombard has demonstrated growth surpassing industry averages in retail health.

Jefferies suggested that with recent industry pricing adjustments, the timing is opportune for ICICI Lombard to drive expansion in the retail health segment.

In addition, a new collaboration with PBFintech Ltd. is expected to bolster the insurer's health insurance segment, targeting a compound annual growth rate of 25% from fiscal 2024 to 2027, Jefferies stated in a report on Monday.

Jefferies reaffirmed a 'buy' rating on ICICI Lombard and raised its target price from Rs 1,190 to Rs 2,090 per share, implying a potential upside of 15.6%.

Motilal Oswal also maintained a 'buy' rating with a target price of Rs 2,100 per share, suggesting a 16% increase. The brokerage anticipates enhanced return on equity for ICICI Lombard in the forthcoming years, forecasting scale benefits, a more favourable product mix with increased retail health share, and overall channel improvements in a note on Monday.

Among the analysts tracked by Bloomberg, 13 have a "Buy" rating on ICICI Lombard, while seven have a "Hold" rating and four have a "Sell" call.