ICICI Prudential Life Insurance Company Ltd. share price target

Strong quarter with solid growth in premium ICICI Prudential Life Insurance Co. Ltd. is a joint venture between ICICI Bank and Prudential Corp. Holdings. The issuer offers protection for life and health...

ICICI Prudential Life (IPRU) posted 14% YoY growth in new business premium, led by a sharp rise in the single premium business. However, on APE, new business declined 18% YoY, largely due to ULIP plunging 39% YoY (strong trends reported on a sequential basis). Persistency rate improved in 13th/61st month by 60bp/50bp QoQ to 82.7%/58.0%. However, on a YoY basis, it declined across cohorts (barring 61st month). Overall, persistency in the Protection segment has improved sharply. VNB margins moderated to 25.7% (26% in 9MFY21), led by moderation in...

Slower growth in retail term business comes as negative surprise ICICI Pru Life's APE growth rate improved to -18% YoY/13% QoQ and -27% YoY on 9MFY21 basis. Volumes have recovered gradually but ticket sizes have been on lower side. Protection share dipped to 18% from 19.5% in H2 on back of drop in retail protection & recovery in ULIP and strong non-par savings. Management was cautious on retail protection in view with risk management due to pandemic and saw strong group protection growth. Margins have largely held up at 26%, while VNB has flattish. New products,...

Quarter dented by weak ULIPs; Outlook positive ICICI Prudential Life Insurance Co. Ltd. is a joint venture between ICICI Bank and Prudential Corp. Holdings. The issuer offers protection for life and health...

ICICI Pru Life's delivered a strong uptick in margins to 27.4% in Q2FY21 & 26.3% on H1FY21 basis which was up 295bps QoQ improvement and is up 188bps up from Q1FY21 to H1FY21 basis. Tailwinds on margins have been on healthy mix change towards non-par savings & protection, while re-pricing benefit & opex control also help deliver margins. Protection share is now 19% in APE mix, although it is still lagging to peers with de-growth of 18% YoY in Q2FY21 & 10% YoY in H1FY21. Though margins have been strong, we believe margins will not sustain due to recovery in ULIP post Q4FY21, retraction of...

ICICI Prudential Life (IPRU) posted a sharp improvement in VNB margins at 27.4% (the highest among the listed insurers). This was aided by the growing mix of the Non-Linked Savings business and improvement in Protection margins as the entire re-insurance hike was passed on to the customer. APE declined 23% YoY, mainly led by a 45% YoY plunge in ULIP (reported strong trends on a sequential basis). Persistency rate exhibited a mixed trend; it showed marginal improvement in 13th/61st month, but declined in other cohorts. Overall, persistency in the Protection segment...

We recommend a Buy rating on the stock with a price target of Rs. 532. ICICI Prudential Life Insurance (IPRU) posted strong results indicating an encouraging recovery on the topline, while VNB margins and APE growth improved q-o-q. Though annualised premium equivalent (APE) declined by 22.9% y-o-y, to Rs. 1,465 crore on a sequential basis it grew by 78% y-o-y, indicating a revert to normalcy, buoyed by strong growth in non-linked savings products (up 45.2% y-o-y). Performance was also impacted by the shift in customer preferences, away from market-linked products, which was down 41.5% y-o-y for Q1 FY21. Also, VNB margin improved to 27.4% (from 24.4% for Q1FY2021...

Individual Protection APE decline was 1520%. This quarter had seen increased competitionwithincreasedfocusonProtectionbyallindustryplayers.ROPareincluded bymanyplayersinprotectionbusiness,howeverthecompanywantstofocusonpure retail protection as ROP and pure protection has significant margin gap. Strong...

Quarter dented by weak ULIPs; Outlook intact ICICI Prudential Life Insurance Co. Ltd. is a joint venture between ICICI Bank and Prudential Corp. Holdings. The issuer offers protection for life and health...

Valuation and Outlook: We have valued the stock based on 2.7x forward P/EV on discount of 0.67x and 43.1x forward P/VNB and has arrived at a price target of Rs.442 with potentialupside of 0.5%. We rate the stock as SELL'.