Markets Bullish on Insurance Sector: Know Why And How Are the Players Poised?

Several Insurance companies were traded in green today, 18th April amid market views turning positive for upcoming Q4 results of the insurance companies.

Insurance Sector Trading in Green:

Various insurance sector stocks were seen trading in green today after strong results from ICICI Lombard General Insurance and expectations of the same from other insurance sector companies as well.

Brokerages turning positive on insurance sector stocks

• HDFC LIFE:

JM Financial on Hdfc Life said,” With its strong product proposition and enhanced distribution strength of parent banca and agency, we have the greatest comfort in its growth delivery, with margin expansion expected from FY26 onwards. We see 35% upside from current levels for our target price of Rs.819.”

Motilal Oswal Financial Services, a brokerage firm, has issued a recommendation for HDFC Life Insurance Company. The stock has a potential upside of 19.35% with a target price of Rs.700.0. The recommendation was made when the stock was priced at Rs 592.0, and the current price is Rs.614.70.

• ICICI LOMBARD GENERAL INSURANCE:

ICICI Lombard’s share price jumped over 5% in early trade on Wednesday after the company reported strong earnings for the fourth quarter of FY24. ICICI Lombard shares gained as much as 5.27% to Rs.1,736.00 apiece on the BSE.

The company’s net premium written in the March quarter increased 18% to Rs.4,767 crore from Rs.4,047 crore, year-on-year (YoY). Its solvency ratio also improved to 2.62% from 2.51% in the year-ago period.

ICICI Lombard’s board of directors also recommended a final dividend of Rs.6 per share.

KOTAK SECURITIES says ICICI Lombard has fared well due to a combination of a better pricing environment and better risk management. 

Motilal Oswal has a buy call on ICICI Lombard General Insurance Company with a target price of Rs.2100. The current market price of ICICI Lombard General Insurance Company Ltd. is Rs.1715.05. An upside of around 22% from the current market price.

• LIFE INSURANCE CORPORATION OF INDIA:

Prabhudas Lilladher has a buy call on Life Insurance Corporation of India with a target price of Rs.1200. The current market price of Life Insurance Corporation of India is Rs.984.

Conclusion:

With strong results from ICICI Lombard General, the other companies are also expected to perform decent Q4 results and brokerages are also bullish on Insurance sector stocks. With HDFC Life all set to post its Q4 results on today 18th April all eyes are on it.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.