Buy ICICI Prudential Life Insurance; target of Rs 800: Sharekhan

Sharekhan's research report on ICICI Prudential Life Insurance

ICICI Prudential reported a ~34% y-o-y growth in APE, albeit on a lower base led by strong growth across its distribution channels. VNB margins stood at 24% vs estimates of 24.5% and 30% y-o-y.VNB margins lagged on an adverse product mix and higher expense ratio . VNB grew by 8% y-o-y to Rs. 472 crore.Management expects APE growth to outpace industry led by sustained strong growth across its distribution channels, while VNB growth would depend upon product mix and expense ratio.

Outlook

We maintain a Buy with a revised PT of Rs. 800 by increasing the multiple, given growth outlook improving. The trades at 2.1x/1.8x its FY2025E/FY2026E EVPS.