Jefferies Bullish on ICICI Lombard as Stock Nears 52-Week High

ICICI Lombard share price increased by over 1% to ₹1,831 per share on July 2, approaching its 52-week high of ₹1,832 per share. This rise followed a 'buy' recommendation from Jefferies, which set a target price of ₹2,090. Analysts see the company's new health insurance product, 'Elevate,' as a potential game-changer in the underpenetrated retail health market.

So far this year, shares of this private insurance player have surged over 27%, outperforming the benchmark Nifty 50 index, which has risen over 10% during the same period.

ICICI Lombard's 'Elevate' introduces advanced features such as AI-driven coverage, 'Power Booster' add-ons, and reset benefits, enhancing personalized and continuous health insurance coverage.

Jefferies highlighted that the unlimited sum insured and customization options in 'Elevate' could significantly bolster ICICI Lombard's market share in retail health, which is currently at 3% compared to its overall market share of 9%.

Anand Singhi, Chief of Retail and Government at ICICI Lombard, emphasized the transformative impact of 'Elevate,' stating, "As an industry first powered by AI, 'Elevate' redefines health insurance by offering deeply personalised coverage tailored to unique customer needs."

Some of the key features of Elevate include the 'Infinite Sum Insured,' which addresses concerns about limited coverage and sum insured. It offers unlimited coverage and comprehensive financial protection with an unlimited claim amount for a one-time claim.

The 'Power Booster Add-on' provides a 100% annual cumulative bonus indefinitely, while the 'Reset Benefit' allows unlimited coverage resets, ensuring continuous protection.

In May, ICICI Lombard reported a robust year-on-year growth of 22% in retail premiums, driven by strong performances in motor (29% growth) and health (22% growth). Health premium growth was particularly boosted by a 24% increase in group business premiums.