Citi starts Star Health at 'overweight', ICICI Lombard at 'underweight'

Star Health and Allied Insurance

16/04/2025 09:52

** Citi Research starts Star Health and Allied Insurance STAU.NS with "overweight" and on ICICI Lombard ICIL.NS with "underweight"

** Says growth in health insurance remains far higher than other non-life categories; Star Health's re-rating is in sight with improved profitability

** Citi says STAU trades at 45%-55% discount to ICIL

** STAU's new business growth to remain strong in next few quarters on strong back book, channel diversification and investments in sales franchise - Citi

** Says, STAU's price hikes taken on family health insurance plans last year to also benefit gradual growth

** Adds, lack of visibility on price hikes for ICIL's third party motor insurance plans, sluggish auto sales growth to drag its premium growth

** STAU gained as much as 2.6%, while ICIL down as much as 4.2%

** STAU last up 0.2%, ICIL down 1.3%