In Fiscal 2017, co had the largest market share of gross direct premium among general insurers in India (Source: CRISIL Re-port). As of March 31, 2017, co had issued 27.10 million poli-cies across all its product segments, the highest among all gen-eral insurance companies in India (Source: CRISIL Report). As of June 30, 2017, co’s operations were spread across 29 States and seven Union Territories in India and across 28 other coun-tries globally through a number of international branches, agency offices and Subsidiaries including a desk at Lloyd’s, London. As of June 30, 2017, co’s distribution network in India included 68,389 individual agents and 16 corporate agents, bancassurance arrangements with 25 banks in India, and a large number of OEM and automotive dealer arrangements through co’s agent and broker network.In Fiscal 2013, 2014, 2015, 2016 and 2017, despite increasing competition from pri-vate players, co have maintained market leadership in the gen-eral insurance industry in India and was leaders in all seg-ments except crop insurance (Source: CRISIL Report). In Fiscal 2017, co’s gross direct premium from fire, engineering, avia-tion, liability, marine, motor and health insurance represented a market share of 19.1%, 21.9%, 29.6%, 18.2%, 21.0%, 15.1% and 18.4%, respectively, of total gross direct premium in these segments in India, and co was the market leader in each such product segment (Source: CRISIL Report). Co’s solvency ratio as of March 31, 2017 and as of June 30, 2017 was 2.22 and 2.27, respectively, compared to the IRDAI specified control lev-el of 1.5. Co’s claim settlement ratio in Fiscal 2017 was 90.4% (including suit claims) which is the highest among the top 10 multi-product insurers in India (Source: CRISIL Report).
Co is bringing the issue at price band of Rs 770-800/share at p/b multiple of 4.34 . Although co is reasonably priced as compare to its peers but declining profitability,negative operating profit in FY16 & FY17 & lower return on equity fails to infuse optimism in fundamentals of company. Hence we recommend only "Long Term Subscribe" on issue.
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