ICICI Prudential Life Insurance Company Ltd. share price target

In Q2FY23, the Gross Written Premium (GWP) grew 36.2% YoY/ 3.8% QoQ at INR 98,956 Mn driven by 26.2% YoY growth in the New Business Premium (NBP).

ICICI Prudential Life Insurance (IPRU) reported good performance in Q2FY23.

H1FY23 VNB grew 25% YoY to Rs 10.9bn with margin profile strong at 31%; on course to double VNB by end-FY23 vs. FY19

We remain enthused with IPRU Life’s product and channel diversification strides, which have made the business considerably more robust in Q1FY23 than before. This has been illustrated by the fact that VNB margin improved 302bps/162bps QoQ/YoY due to change in product mix (ULIP has declined from 48.3% in FY22 to 40.5% in Q1FY23 and Protection has increased from 17% to 21.7% in the same period).

Q1 APE grew 25% YoY to Rs 15.2bn led by the savings segment at 25% and protection at 22%

We remain enthused with IPRU Life’s product and channel diversification strides, which has made the business considerably more robust than before. This is illustrated by the fact that the Rs21.6bn FY22 VNB mix is split between 16% by ULIPs, 43% by protection and 41% by non-linked savings.

There has been a lucrative turnover in business by emphasizing on the key strategic elements (KSE) i.e, yielding premium growth, directing better production, aiding persistency and reducing claims. Indirectly proportional COVID-19 fatalities to augmented vaccinations lead to positive outlook. Hence, we reiterate our BUY rating on the stock with a rolled forward TP of Rs. 657 based on 2.0x FY24E EVPS. Premium growth led by well diversified product and distribution mix In Q3FY22, gross premium and net premium stood flat at Rs. 9,344cr (+2.1% YoY) and...