We have tweaked our APE growth assumptions as a result of which our target price increases to Rs 577 (FY20 EV + 26.5x FY20E adj. VNB). While 1QFY19 total APE grew 17% YoY to Rs 5.6bn post over-run VNB margins increased only 10bps YoY to 18.1%. Margin was dragged lower as 1Q is a seasonally slower qtr (~15% of annual premiums), product mix changed (300bps YoY improvement in protection offset by a 1300bps interchange from PAR to linked), and costs rose as a result of higher investments in proprietary channel and higher acquisition operating costs.