ICICI Lombard General Insurance Company Limited’s (NSE:ICICIGI) top owners are public companies with 50% stake, while 30% is held by institutions
6 mins read

ICICI Lombard General Insurance Company Limited’s (NSE:ICICIGI) top owners are public companies with 50% stake, while 30% is held by institutions

key insights

To understand who really controls ICICI Lombard General Insurance Company Limited ( NSE:ICICIGI ), it is important to understand the ownership structure of the business. We can see that public companies have a major stake in the company with 50% ownership. In other words, the group will gain the most (or lose the most) from its investment in the company.

Institutions, on the other hand, have 30% ownership in the company. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders.

In the chart below, we zoom in on the different ownership groups of ICICI Lombard General Insurance.

View our latest analysis for ICICI Lombard General Insurance

NSEI:ICICIGI Ownership Breakdown April 12, 2024

What does institutional ownership tell us about ICICI Lombard General Insurance?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. Therefore they generally consider buying larger companies that are included in the respective benchmark index.

We can see that ICICI Lombard General Insurance has institutional investors; And he owns a good chunk of the company's stock. This means that the analysts working for those institutions have looked at the stock and they like it. But like anyone else, they can be wrong. It is not uncommon to see a big drop in the share price if two large institutional investors try to sell out of a stock at the same time. It is therefore worth checking the past earnings trajectory of ICICI Lombard General Insurance (below). Of course, keep in mind that there are other factors to consider.

NSEI: ICICIGI Earnings and Revenue Growth April 12, 2024

We note that hedge funds don't have a meaningful investment in ICICI Lombard General Insurance. ICICI Bank Limited is currently the largest shareholder of the company with 50% shares. With such a large ownership stake, we estimate that he has significant control over the company's future. ICICI Prudential Asset Management Co. Ltd. is the second largest shareholder, owning 4.7% of the common stock, and SBI Funds Management Ltd. owns about 4.6% of the company's stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a fair number of analysts covering the stock, so it could be useful to find out their overall view on the future.

Insider Ownership of ICICI Lombard General Insurance

While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are the founder or CEO.

Insider ownership is positive when it signals that leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data shows that insiders own less than 1% of ICICI Lombard General Insurance Company Limited in their own names. However, we note that it's possible that insiders may have an indirect interest through a private company or other corporate structure. This is a very large company, so it would be surprising to see that a large portion of the company is owned by insiders. Although their stake is less than 1%, we can see that the board members collectively own shares worth ₹3.0b (at current prices). It's good to see that board members own shares, but it might be worth checking if those insiders have been buying.

general public ownership

The general public – which also includes retail investors – has a 15% stake in the company, and hence cannot be easily ignored. Although this size of ownership may not be enough to sway a policy decision in their favor, they can still exert a collective influence on company policies.

private company ownership

Our data shows that private companies hold 3.7% of the company's shares. It's hard to draw any conclusions from this fact alone, so it's worth looking at who owns those private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

public company ownership

It appears to us that public companies own 50% of ICICI Lombard General Insurance. It is difficult to say for sure but it shows that their business interests are interconnected. This could be a strategic stake, so it's worth keeping an eye on this space for changes in ownership.

Next Steps:

Although it is worth considering the different groups that own a company, there are other factors that are even more important. Note that ICICI Lombard General Insurance is showing 1 warning sign in our investment analysis All you need to know about this…

If you want to know what analysts are predicting in terms of future growth, don't miss this Free Report on analyst forecasts.

Note: The figures in this article have been calculated using data from the last twelve months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the entire year.

Valuation is complex, but we're helping to simplify it.

determine whether ICICI Lombard General Insurance Potentially overvalued or undervalued by examining our comprehensive analysis, which includes Fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article from Simply Wall St is of a general nature. We only provide commentary based on historical data and analyst forecasts using unbiased methodology and our articles are not intended to provide financial advice. It does not recommend buying or selling any stock, and does not take into account your objectives, or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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