Synopsis: Nomura has recommended Niva Bupa and Star Health as Buy, with upside potential of up to 23%, while maintaining a Neutral rating on ICICI Lombard.
Nomura has initiated coverage on leading insurance companies, sharing its outlook on their future growth, profitability, and valuations. The brokerage has started with Buy ratings on Niva Bupa Health Insurance and Star Health & Allied Insurance, while assigning a Neutral rating to ICICI Lombard General Insurance based on its growth outlook and current valuation.
The brokerage expects Niva Bupa and Star Health to benefit from strong premium growth, improving profitability, and better operational performance over the next few years. However, it believes ICICI Lombard may face slower growth due to pricing pressure in some insurance segments, while its premium valuation leaves limited room for significant upside. Here are a few Insurance stocks recommended by Nomura with a high growth potential of up to 23 percent:
Niva Bupa Health Insurance Company Limited
With a market capitalization of Rs. 15,927.67 crore, the shares of Niva Bupa Health Insurance Company Limited closed at Rs. 86.20 per equity share, rising nearly 1.25 percent from its previous day’s close price of Rs. 85.14.
Nomura, a prominent brokerage firm, has recommended a “Buy” call on Niva Bupa Health Insurance Company Limited with a target price of Rs. 105 per share, indicating an upside potential of 23.33 percent from its previous day’s close price of Rs. 85.14 per share.
Nomura has initiated coverage on Niva Bupa with a Buy rating, citing the company’s strong growth outlook and improving profitability. The brokerage believes loss ratios have stabilized at current levels, which should support better earnings while the company continues to expand its business.
Nomura expects gross premiums to grow at a CAGR of 23 percent between FY26 and FY29, driven by strong demand and market share gains. It also forecasts return on equity (ROE) to improve to 15.9 percent by FY29, supported by sustained premium growth and better operational performance.
Niva Bupa Health Insurance Company Limited is an Indian standalone health insurance company that offers health insurance products for individuals, families, senior citizens, and corporate customers. Originally established as Max Bupa Health Insurance, it has grown into one of India’s prominent health insurers, supported by the global healthcare group Bupa and a broad nationwide hospital network.
Star Health & Allied Insurance Company Limited
With a market capitalization of Rs. 34,520.04 crore, the shares of Star Health & Allied Insurance Company Limited closed at Rs. 586.50 per equity share, down nearly 0.01 percent from its previous day’s close price of Rs. 586.55.
Nomura, a prominent brokerage firm, has recommended a “Buy” call on Star Health & Allied Insurance Company Limited with a target price of Rs. 675 per share, indicating an upside potential of 15.08 percent from its previous day’s close price of Rs. 586.55 per share.
Nomura has initiated coverage on Star Health with a Buy rating, highlighting its focus on annual repricing, cohort-based pricing, and execution across four key business pillars. These measures are expected to improve pricing discipline and strengthen underwriting performance.
The brokerage believes the company’s new accounting method will provide better earnings visibility and make profitability more predictable. Nomura expects return on equity (ROE) to improve to 12-14.9 percent during FY27-FY29, supported by better underwriting discipline and operational efficiency.
Star Health & Allied Insurance Company Limited is an Indian health insurance company headquartered in Chennai, Tamil Nadu. Founded in 2006, it was India’s first standalone health insurance company and has grown into one of the country’s largest private health insurers, focusing primarily on retail health insurance.
ICICI Lombard General Insurance Company Limited
With a market capitalization of Rs. 88,016.69 crore, the shares of ICICI Lombard General Insurance Company Limited closed at Rs. 1,762.90 per equity share, rising nearly 0.29 percent from its previous day’s close price of Rs. 1,757.85.
Nomura, a prominent brokerage firm, has recommended a “Neutral” call on ICICI Lombard General Insurance Company Limited with a target price of Rs. 1,820 per share, indicating an upside potential of 3.54 percent from its previous day’s close price of Rs. 1,757.85 per share.
Nomura has initiated coverage on ICICI Lombard with a Neutral rating, citing that stronger growth would likely require a favorable regulatory change. The brokerage expects the health insurance segment to remain the company’s key growth driver in the coming years.
However, competition and pricing pressure in the motor and commercial insurance segments may limit overall growth. Nomura also believes the stock’s premium valuation already reflects high expectations, meaning the company will need sustained growth momentum to justify further upside.
ICICI Lombard is one of India’s largest private-sector general insurers, offering a broad range of non-life insurance products, including motor, health, travel, home, crop, marine, and commercial insurance. Headquartered in Mumbai, it operates as a publicly listed company and is part of the broader ICICI financial services ecosystem.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
