Accumulate ICICI Prudential Life Insurance; target of Rs 464: Prabhudas Lilladher

Prabhudas Lilladher's research report on ICICI Prudential Life Insurance

ICICI PruLife’s margins were a beat to our expectations at 13.7% for 9MFY18 (Ple: 11% for FY18E) on better growth coming from newly launched high margin product and improvement in operational front. However, APE growth was lower than our expectations on high base effect on account of demonetisation. Management expects margins to be maintained and APE growth to slightly moderate going forward. We have tweaked slightly on APE growth front but improved our new business margins assumptions.

Outlook
We retain Accumulate with TP of Rs464 (revised from Rs450) and value it at Rs666 bn (from Rs646 bn) which translates to 2.7x FY20E EV.

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