Pre-ipo opportunity in ICICI Lombard

Company Background:ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank Limited and Fairfax Financial holdings Limited.The company is in the business of general insurance. It caters to a large category of insurance needs ranging from travel insurance, health insurance, vehicle insurance (two-wheeler and car insurance) to catering to specific communities like NRI insurance and rural insurance. In 2016, ICICI Lombard received the Golden Peacock Award for Business Excellence and the Claim Service Leader Award. The company also received Technology Innovation Award at the Indian Insurance Awards in 2016.

Insurance Industry: The general insurance industry as a whole is witnessing steady growth and shown a good growth of 16% CAGR over the past 15 years.

Company’s growth:ICICI Lombard is striving to many firsts in the industry over the past several years and as a result has emerged an industry leader. The company has been credited with implementing RashtriyaSwasthyaBimaYojana (RSBY), among the world’s largest and most successful mass health insurance programmes. In 2016, During the year, the company became the first to introduce the Outpatient Department (OPD) health insurance offering in the form of a cashless OPD card for corporate enterprises.The Company launched a ‘first-of-its-kind’ longterm two-wheeler insurance policy which received encouraging response with 5,00,000+ policies sold in 2016. The company has been using several technological advancements to increase its service quality and speed resulting in better business. The company has used mobile inspections, iPartner and samadhan to increase its SME business.

Company’s financial performance: ICICI Lombard’s income from premiums collected increased a robust 27.8% to Rs. 6,163 crores in FY17.As a result, profit before tax increased a healthy 28.6% at Rs. 910 crores as compared to Rs. 707 crores in FY15. Owing to certain tax benefits, the company’s profit after tax was even higher at Rs. 701 crores or 38.3% higher than FY15. Thus, the company’s reserves and surplus stood at Rs. 3,274 crores as on 31st March 2017, up by 20% over FY2015.

Listing status: Currently, ICICI Lombard is currently not listed in recognized stock exchanges like NSE and BSE. Once the company comes out with an IPO, the company will get listed. Currently the shares of the company are traded off market as pre-ipo/unlisted shares. The company is planning to come out with an IPO very soon to help its existing investors get favourable exit.

If you wish to buy shares of such unlisted companies, you should be aware of tax implications and lock-in requirements while before the stocks get listed. Details of the same can be found from our knowledge center section.

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You can download some of the recent reports of ICICI Lombard, attached below

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