Are institutions heavily invested in shares of ICICI Lombard General Insurance Company Limited (NSE:ICICIGI)?

A look at the shareholders of ICICI Lombard General Insurance Company Limited (NSE: ICICIGI) can tell us which group is the most powerful. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. We also tend to see a decline in insider participation in companies that were previously public.

ICICI Lombard General Insurance has a market capitalization of ₹659 billion, so it is too big to fly under the radar. We expect institutions and retail investors to own part of the business. Our analysis of company ownership, below, shows that the institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about ICICI Lombard General Insurance.

Check out our latest analysis for ICICI Lombard General Insurance

NSEI: ICICIGI Ownership Breakdown February 13, 2022

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

As you can see, institutional investors hold a sizeable share of ICICI Lombard General Insurance. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the earnings history of ICICI Lombard General Insurance below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI:ICICIGI Earnings and Revenue Growth February 13, 2022

We note that hedge funds have no significant investment in ICICI Lombard General Insurance. Looking at our data, we can see that the major shareholder is ICICI Bank Limited with 48% of the shares outstanding. For context, the second shareholder owns approximately 3.7% of the outstanding shares, followed by a 3.6% ownership by the third shareholder.

A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 52% stake.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Insider Ownership of ICICI Lombard General Insurance

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our information suggests that insiders of ICICI Lombard General Insurance Company Limited own less than 1% of the company. But they may have an indirect interest through a corporate structure that we have not noted. It’s a very big company, so it would be surprising to see insiders owning much of the company. Although their stake is less than 1%, we can see that the board members collectively own $1.9 billion in shares (at current prices). In this kind of situation, it may be more interesting to see whether these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 16% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Our data indicates that private companies hold 3.7% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Ownership of a public company

Public companies currently own 52% of the shares of ICICI Lombard General Insurance. It’s hard to say for sure, but it suggests they have intertwined business interests. This could be a strategic stake, so it’s worth monitoring this space for ownership changes.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. For example, we found 3 warning signs for ICICI Lombard General Insurance which you should be aware of before investing here.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, 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 full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.