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ICICI LOMBARD – IPO Analysis & Review

ICICI LOMBARD IPO WILL BE AVAILABLE FROM 15-SEPT TO 19- SEPT.

—Promoters will dilute up to 86,247,187 equity shares.

—Face value of Rs. 10.

—The IPO has been fixed in the range of Rs. 651- Rs. 661 per equity share.

1. Overview

The Company was founded in 2001 through a joint venture between ICICI Bank Limited and Fairfax Financial Holdings Limited, the former being India’s largest private sector bank and the latter being a Canada-based diversified financial services company engaged in general insurance, reinsurance, insurance claims management and investment management.

2. Service Offered

1. Motor Insurance
2. Health Insurance
3. Travel Insurance(Along with traditional travel insurance ,Optional Travel Insurance for e-ticket passengers of IRCTC)
4. Home Insurance
5. Crop/Weather Insurance(in collaboration with Pradhan Mantri Fasal Bima Yojana)
6. Mass Health Insurance
7. Marine Insurance
8. Property Insurance
9. Specialty Lines Insurance

3. Achievements

ICICI Lombard General Insurance became the 1st Private General Insurance Company to cross the milestone of 100 billion in Gross Domestic Premium Income in FY2017.
Crop insurance has become the third largest segment by premium, following the launch of the Pradhan Mantri Fasal Bima Yojana in February 2016
39.3% Growth in motor insurance segment in FY2017 over the previous year
23.8% Growth in health insurance segment in FY2017 over the previous year
288.2% Increase in the crop insurance segment in FY2017 over the previous year.
32.3% Growth in general insurance industry in FY2017 over the previous year
Headcount as on March 31, 2017 :- 7,904
Branches as on March 31, 2017:- 249
Return on Equity:-20.3%

IPO

ICICI Lombard General Insurance would offer about 19 per cent of its shares in an initial public offer (IPO), in which parent ICICI Bank and a unit of Fairfax Financial Holdings will offload their shares.
It would offer 86,247,187 equity shares, at the face value of Rs 10 per share, representing about 19 per cent of its equity share capital.
ICICI Bank, the majority shareholder of ICICI Lombard general insurance, will dilute 31,761, 478 of its equity share, while FAL Corp, a unit of Fairfax Financial Holdings, will dilute up to 54,485,709 equity shares.

Earlier, Fairfax Financial Holdings had sold 12.18 per cent in ICICI Lombard to private equity firms Warburg Pincus (nine per cent), Clermont Group (1.59 per cent) and IIFL Special Opportunities Fund (1.59 per cent). After the sale, the share ownership in ICICI Lombard of ICICI Bank and Fairfax will be approximately 63 per cent and 22 per cent, respectively.

Insurance Sector

Public vs Private insurer

PAT

Policies sold

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by , created on July 29th, 2017, last updated on February 15th, 2019

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