ICICI Lombard's high valuation may trim upside from expected premium growth

The stock of ICICI Lombard General Insurance surged by over 25 per cent in the last three months, outpacing 8-per cent gains returned by the bellwether BSE Sensex.  The scrip now trades at around 8x its 2019-20 (FY20) estimated book value, against a far subdued 2x book ascribed to its public sector peer — New India Assurance. Steep valuations could confine the potential upsides for ICICI Lombard stock, even as the earnings outlook remains strong.  While underwriting profit may be affected due to lower pricing potential, higher float could make good for the same as i.....
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