Geojit's research report on ICICI Prudential Life Insurance Co
ICICI Prudential Life Insurance Co. Ltd. (IPRU), a joint venture between ICICI Bank and Prudential Corp. Holdings, offers life, health and pension products. The company’s gross premium rose 3.8% YoY to Rs. 9,895cr in Q2FY23, mainly due to growth in non-linked savings and protection segments, along with continued expansion of partnerships with banks, and growth in agency and direct-to-consumer channels. Value of new business (VNB) rose 20.6% YoY in Q2FY23 to Rs. 6.2bn, driven by a balanced product mix. VNB margin expanded 300bps YoY to 31.0%, owing mainly by sale of high-margin products. IPRU has been continuously focusing on adding agencies and entering into partnerships, which should help boost its premiums. The management is also on track to double FY19 VNB by year-end, with improved cost management and business quality.
Outlook
Hence, we reiterate our BUY rating on the stock, with a rolled forward target price (TP) of Rs. 629 based on 2.2x FY24E embedded value (EV).
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