21 January 2020 IPRU reported moderation in premium growth as renewal premium growth was muted due to weak persistency. Although the opex ratio stood elevated, VNB growth remained strong at 33% with margins stable at 21%. Maintain PAT increased 2% YoY to INR3b (7% miss) in 3QFY20. Renewal premium growth was muted month persistency declining by 100bp/230bp YoY. Total APE was up ~4% YoY led by 37% YoY growth in protection APE, while savings APE growth was flat. VNB margin stood stable at ~21% due to the higher share of protection business, which resulted in 33% YoY growth in VNB to INR4.3b. VNB growth was mainly led by retail and group protection business. Total expenses (commission + opex) were up 26% YoY (higher than premium growth) as operating expenses increased 32% YoY, mainly driven by investment in protection business. Cost to weighted received premium increased 120bp YoY to 16.